Pakistan needs to Expire all Currency Notes and Bring New Currency, to force hidden money to apear

[POPEYE-Sailor]

Stop discouraging the lad!

I like reading when Pakistani people can think outside the box! You dont like to read it stay away from his threads. Simple! But dont discourage my people!

lol no one has the power in this forum to change the pak economy expct gvt official. dont be act like a economy expert.

First follow the rules and regulation which gvt imposed on us then think beyond the current situation.

 

[Pakistansdefender]

It would be really good.
But our bad economy cannot tolerate it sadly.
It would be good in long run while. In short run we have to bear consequences which we can't.

 

[Dubious]

lol no one has the power in this forum to change the pak economy expct gvt official. dont be act like a economy expert.

First follow the rules and regulation which gvt imposed on us then think beyond the current situation.

Are you talking about yourself? How can you assume the lad hasnt? It is known in psychology that you project on others based on (a) your limited knowledge (b) what you do.

As for changing economies in Pakistan...He isnt changing it...but thinking outside the box and sharing his thinking on a public forum with Pakistani posters too...So it can result in either (a) negative people like yourself discouraging and making fun of him (b) educated people appreciating that people in Pakistan can think for themselves and are not limited to what they see on tv or what their leaders feed them (c) Some idea getting out and making an impact

Take your pick and stop trying to drag positive people in your negativity

 

[AZADPAKISTAN2009]

Expiring the currency notes will encourage people to go to Bank

The Bank can collect their old currency notes and open up a New Bank Account for them
Banks will be asked to provide a low monthly fee (50 rupee fee monthly fee) accounts to Pakistani so even poor person can open a Bank Account

If they can explain their source of income i.e 10 year employment and salary matches the amount being deposited then no questions are asked. Else they are given choice to pay Calculated Tax 15% on the total amount being deposited

Example : Someone comes and deposits 25 Crore rupees 15 % Tax collected 3.7 Crore Tax collected Remaining Money is released to consumer


If someone is Unemployed for 20 years but they have 25 Crore then FBR will have an interview with person on source of income, a fine of 15% (3 Crore more) may get imposed if person's job employment history does not matches the Big amount. The person would rather pay the 15% Tax and 15% Fine instead of losing 100% of their wealth

A person can self identify and pay this fine 15% and save himself hassle with FBR and Bank will issue them a Letter of payment of 15% fine


So 25 Crore deposited by a Man , he pays 3.7 Crore Tax , and 3.7 Crore Fine and rest is clean money.

So in this example FBR collected a cool 7 Crore Tax from 1 person

• For a small guy 20 Lakh , deposit will mean 3 Lakh Tax to secure the funds as white funds

Most likely there will be many new accounts created for 20 Lakh - 50 Lakh range currency hiding in people's safes and personal safety safes in homes or offices



There is almost 100% chance of capture of Many Big fish who store cash outside of Banking channels


Other Benefits

• Hundi Business will be forced to shut down or operations disrupted badly, the Hundi owners maintain large liquid cash stack which is used for Hundi Business they will be forced to deposit that stash in Banks and automatically Hundi problem will be solved . If Hundi owners have no liquid cash they can't distribute funds locally for their clients

• Banks will gain new Account holders who will deposit funds in Banks

• And people will have more incentive to send cash directly to Bank Accounts (Remittance). Specially now that they have Bank accounts they created

 

[Realtalk108]

This kind of gems is why I visit PDF. The country next door went down in flame right before your eyes with this demo nonsense. Yet here we are.

 

[AZADPAKISTAN2009]

You know we always do stuff the "Right way" and not the Indian way

 

[Imad.Khan]

Pakistan needs to Expire all Currency Notes and Bring New Currency, to force hidden money to appear

Corrupt people have stashed up money in their Village Hawali , or their Barn Yard or their Condo apartment or in one of their 100 homes

Solution is Simple

• EXPIRE THE CURRENCY NOTES

Step1 : 40 Days Notice to Expire all the all currency notes , which are in Public Hands
After 40 Days the currency will not be exchangeable


Step2: Bring an Amnesty Scheme , to pay 80% of Tax on funds and deposit it legally in Bank Accounts


Step 3: Record your employment History for Last 10 years

STEP 4 : Introduce new paper currency

Step 5:

Government should use the funds to purchase Gold in Open Market
Government should use the funds to purchase Silver in Open Market

Start paying all Government Employees in Gold/Silver Coins
and slowly expand to private sector

• Introduce a Gold/Silver Coin , regular coin covered with gold layer (Value around $100 Dollar)
• Gold never loses it's value drastically it can always be melted and Gold can be recovered

Gold Coin from 1976

500 Rupee Gold Coin

1,000 Rupee Coin

1 Pakistani Dinar = 1 Dollar value of Silver Coin
25 Pakistani Dinar = 25 Dollar worth of Silver Coin
50 Pakistani Dinar = 50 Dollar value of Silver Coin
100 Pakistani Dinar = 100 Dollar value of Silver Coin
500 Pakistani Dinar = 500 Dollar Value of Gold
1000 Pakistani Dinar = 1000 Dollar worth of Gold

I agree with the premise that we need to make changes so that the black economy and tax evasion is eliminated and also agree that by expiring the existing notes will be a good step. But i have an alternate solution,

1. Need to move the country to an e-economy, as all e-transactions are recorded, the chances of dodging the tax man is almost impossible. Also you can't stash is under the bed.

2. Now i understand that sometimes you require cash. Bank notes should be limited to Rs500 max.

3. Gold/Silver coins are heavy and hard to carry and loosing them is easy, imagine if you have to carry change for Rs1000 in coins.

4. A lot of people claim that majority of the population are illiterate and don't know how to use eftpos/atm machines. Well if they can use mobile phones they can use eftpos/atm machines. The govt and financial institutions could run camps to educate people on how to use them.

5. I am against changing the name of the Pakistan rupee to a Dinar, thats an arab term. if we have to change maybe change it to something that is indigenous to Pakistan.

 

[AZADPAKISTAN2009]

The idea behind Gold/Silver coin is you just need 1 Coin in your wallet to buy all groceries
in Western World you buy your grocery for 50-60 Dollar range or may be 100 dollar

Also you can't take Gold/Silever Coins in bag out of country metals are detected at airport

1 Pakistani Dinar = 1 Dollar value of Silver Coin
10 Pakistani Dinar = 10 Dollar value of Silver Coin
25 Pakistani Dinar = 25 Dollar worth of Silver Coin
50 Pakistani Dinar = 50 Dollar value of Silver Coin <--This 1 Coin can buy you your weeks grocery
100 Pakistani Dinar = 100 Dollar value of Silver Coin
500 Pakistani Dinar = 500 Dollar Value of Gold
1000 Pakistani Dinar = 1000 Dollar worth of Gold



The value of Gold or Silver does not diminishes
If you discover a pot of Roman Empire Gold and Silver Coins you can take it to Gold/Silver shop and get money recovered

Here are Spanish Gold Coins for reference, still 100% cashable

4.5 Million Dollar worth of Gold coins recovered recently all cashable
It is cashable becasue it is a actual "Commodity" not paper promise

Good old days of hording Gold Coins

Remember folks: Gold is formed when Star explodes
Dollar is made : When someone clicks print button on Computer, prints a graphic on paper

 

[AZADPAKISTAN2009]

I agree with the premise that we need to make changes so that the black economy and tax evasion is eliminated and also agree that by expiring the existing notes will be a good step. But i have an alternate solution,

1. Need to move the country to an e-economy, as all e-transactions are recorded, the chances of dodging the tax man is almost impossible. Also you can't stash is under the bed.

2. Now i understand that sometimes you require cash. Bank notes should be limited to Rs500 max.

3. Gold/Silver coins are heavy and hard to carry and loosing them is easy, imagine if you have to carry change for Rs1000 in coins.

4. A lot of people claim that majority of the population are illiterate and don't know how to use eftpos/atm machines. Well if they can use mobile phones they can use eftpos/atm machines. The govt and financial institutions could run camps to educate people on how to use them.

5. I am against changing the name of the Pakistan rupee to a Dinar, thats an arab term. if we have to change maybe change it to something that is indigenous to Pakistan.

E-Governence / Payments are great but since have a large population in Rural Areas unsure how they will be trained to use Smart phone device

I agree it can make tremendous difference in Urban areas (Cities etc)

We Need Pakistan's Own Gold Standard

 

[Imad.Khan]

The idea behind Gold/Silver coin is you just need 1 Coin in your wallet to buy all groceries
in Western World you buy your grocery for 50-60 Dollar range or may be 100 dollar

Also you can't take Gold/Silever Coins in bag out of country metals are detected at airport

1 Pakistani Dinar = 1 Dollar value of Silver Coin
10 Pakistani Dinar = 10 Dollar value of Silver Coin
25 Pakistani Dinar = 25 Dollar worth of Silver Coin
50 Pakistani Dinar = 50 Dollar value of Silver Coin <--This 1 Coin can buy you your weeks grocery
100 Pakistani Dinar = 100 Dollar value of Silver Coin
500 Pakistani Dinar = 500 Dollar Value of Gold
1000 Pakistani Dinar = 1000 Dollar worth of Gold



The value of Gold or Silver does not diminishes
If you discover a pot of Roman Empire Gold and Silver Coins you can take it to Gold/Silver shop and get money recovered

Here are Spanish Gold Coins for reference, still 100% cashable

4.5 Million Dollar worth of Gold coins recovered recently all cashable
It is cashable becasue it is a actual "Commodity" not paper promise

Good old days of hording Gold Coins

Gold/silver coins have their advantages but the disadvantage is quite alarming. Lets look into the disadvantages in abit more detail.

P.S.Now before i proceed i want to make it clear that i am like the way you are thinking and all my rebuff are how i think and not anything personal so i hope you don't get offended.

1.
"50 Pakistani Dinar = 50 Dollar value of Silver Coin <--This 1 Coin can buy you your weeks grocery"
The problem here is that when you go shopping you don't always buy all your groceries from just one shop. so your need more than just one coin and what if you just want to buy naan for dinner, so you are bound to get change.

2. Theft, it is so much easier to steal bank notes and coins than stealing money from a card.

3. Tracing money by FBR or NAB. Its still alot easier to stash gold/silver coins and very hard to trace transactions. Black economy can still thrive with these coins but its really hard with e-transactions.

4. another thing is cost of minting and printing, which will be drastically reduced.

The only advantage is ofcourse the value which is very stable over a longer period. A solution could be that we limit the gold/silver coins to the value of Rs500 and get rid of paper notes altogether.

 

[xyxmt]

just cancel the largest denomination which I think is Rs 5000 because large sum of money must use the largest bill.

 

[AZADPAKISTAN2009]

Considering Pakistan's Yo Yo currency , I would opt to have a stable Coin currency vs a Yo Yo paper bill which goes up and down

Yo Yo Currency is toxic for retiring elderly people , whose saving may not be as much as they hoped for when they retired and is a great burden to their retirement goals

For example , when currency fell from 1:80 to dollar to 1:125 , it significantly reduced the Pension or retirement saving of many elderly Pakistanis

The problem with Card/Chip Cards based transaction system is very simple , these ventures are extremely exploitable unless whole country's security mechanism for data protection is improved

There lies a small chance hackers would be able to steal credit card data unless the security mechanism is rock solid

The other challenge is that 90% -95% of Pakistani businesses and shops take cash and are not card transaction ready


Have these terminals been adopted in Pakistani Business centers?

Until these system don't become adopted in Pakistan 95-99% Card based economy is not possibility

These systems present in all business/government offices in developed world
They don't take paper cash

The Card can still be used to do transaction but what is actually saved in Banks is
GOLD/SILVER COINS

We need our own Gold & Silver Reserve

The long term strategy should be to maintain a steady growth in Gold/Silver for Pakistani
Kept inside Pakistan

 

[Type59]

Gradual change is better. Demonetisation is a bad idea. Indian farmers are still struggling with impact.

 

[jupiter2007]

1. Ask people to open bank accounts and keep money in banks
2. Make payment terminals duty free and ask bank to provide cheap credit/debit card payment services
3. Introduce 100,000 PKR, 50,000 PKR, 10,000 PKR Treasury bills which should be for banks only to make inter-bank payments and settlement - Central banks must have system to keep track of movements and current ownership of these treasure bills.
4. Make any single cash transaction exceeding PKR 10K illegal.
5. Implement daily cash limit of PKR 100K for business, and PKR 1000 for individuals to force them to give up cash.
6. Give people timeline to deposit their hoarded cash into banks and after that implement cash deposit limit of PKR 100K for business per day, and 25K per month for individuals.
7. One fine day, just announce that notes of 5000, 1000, 500 are discontinued and maximum note will be PKR 100, for minor cash requirements. People having these notes may be allowed to deposit in their bank accounts.

After that you will have
1. Bank data to find out tax evaders.
2. Get ride of fake currency notes headache once for all
3. Get ride of bank robberies as there will be not much benefit of looting and having cash
4. Get ride of cash hoarding
5. Control over corruption as you will be able to trace money trail at-least within Pakistan.
6. Control over black economy

IK government must force banks to upgrade their entire infrastructure to prevent hackers stealing money from bank accounts.

 

[WarKa DaNG]

Pakistan needs to Expire all Currency Notes and Bring New Currency, to force hidden money to appear

Corrupt people have stashed up money in their Village Hawali , or their Barn Yard or their Condo apartment or in one of their 100 homes

Solution is Simple

• EXPIRE THE CURRENCY NOTES

Step1 : 40 Days Notice to Expire all the all currency notes , which are in Public Hands
After 40 Days the currency will not be exchangeable


Step2: Bring an Amnesty Scheme , to pay 80% of Tax on funds and deposit it legally in Bank Accounts


Step 3: Record your employment History for Last 10 years

STEP 4 : Introduce new paper currency

Step 5:

Government should use the funds to purchase Gold in Open Market
Government should use the funds to purchase Silver in Open Market

Start paying all Government Employees in Gold/Silver Coins
and slowly expand to private sector

• Introduce a Gold/Silver Coin , regular coin covered with gold layer (Value around $100 Dollar)
• Gold never loses it's value drastically it can always be melted and Gold can be recovered

Gold Coin from 1976

500 Rupee Gold Coin

1,000 Rupee Coin

1 Pakistani Dinar = 1 Dollar value of Silver Coin
25 Pakistani Dinar = 25 Dollar worth of Silver Coin
50 Pakistani Dinar = 50 Dollar value of Silver Coin
100 Pakistani Dinar = 100 Dollar value of Silver Coin
500 Pakistani Dinar = 500 Dollar Value of Gold
1000 Pakistani Dinar = 1000 Dollar worth of Gold

I agree with you