(i) We can fill the National Treasury with recoveries of outstanding loans taken earlier from multiple Banks in the country & later got written off(iii) Transfer of National Money taken fraudulently needs to bring back to the Country Exchequer that’s kept in Overseas Personal Account
(ii) Unpaid Utilities Bills (Electricity/ Gas/ Telecommunication)
(ii) Unpaid Utilities Bills (Electricity/ Gas/ Telecommunication)
(iv) Recoveries of money taken by misappropriating National Account & Kickback are the substantial sources to fill the ‘Empty National Exchequer’ the only viable source to pay off heavy debt of the country as well.
In the current political dismay & vulnerable economic portfolio of the country, the existence of 3rd Political party in Pakistan has been imperative to keep political wrestling competitive (having hawk eyes) instead to move around PML-N & PPP & running the state affairs only on Loan – Loan & Loan considering the most convenient way instead to do legislation & implemented (truly) to recover the myriad loans from the defaulters.
Accountability of ill-gotten money & Unpaid Utility Bills can only be recovered if 3rd political force or Opposition in the Assembly use its real-power - actively involves and ensures legislation implemented - compelling PPP – PML-N & Top Business Tycoons & Powerful Media Magnates - Industrialists & Establishments who took billion of amount loans from multiple Banks in Pakistan and later they got written off instead to pay back to the banks, absolutely appalling and atrocious, an open slap who pays Income taxes and bills honestly.
It’s the time now to hold accountable those who had siphoned off the looted money abroad.
Since the role of Opposition leader in the assembly who is staunch supporter of PPP seems a silent spectator in between two political brasses i.e. PPP & PML-N.We get a thick cloud of mutual understanding & ‘MUK-MUKA’ where the subject ‘Recovery’ to be ensured (practically) as in most cases both leaderships remained involved in squandering national wealth while they were in Govt.
In such a scenario Opposition leader Syed Khursheed Shah (as his position means) should have been very pragmatic, rough and tough but showing very low and conspiratorial attitude. He should have given hard time to the ruling elites or treasury benches but his stature seems compromised in national interest, said by the attendees available at seminar of Economic forum.Very prone giving the floor to PML-N completing its tenure of five years & waiting for their turn as PPP Asif Ali Zardari has assured PML-N saying “QADAM BERHAOO NAWAZ SHAREEF HUM TUMHARI SAATH HAIN” (Go ahead Nawaz Sharif we are with you).
If such understanding looms large in their mind then how the country can trust to get national money back to the national exchequer, emphasized by one of the audience discussing on current economic syndrome.So 3rd political force should open their mouth and build pressure in the assembly to do legislation (if not written) & enforce (if it is already there) asking defaulters to pay back all the dues to the country, be loyal and sincere with the country said by a senior citizen.
Currently the sitting political parties in National Assembly are PTI/ MQM/ ANP/ JI/ JUI-F/ QWP-S/ AJIP/APML/ IND/ AMLP/ PML/ PML-Z/ NPP/ PML-F/ PMAP/ BNP needs to intervene and take the parliamentarians into confidence (with combined collective efforts) put the bill in the assembly to enact the law to start judicial enquiry against defaulters with static plan to recover decade long dues.And urge the National Accountability Bureau (NAB) to play its pivotal and vital role asking the defaulters to pay back outstanding loans - Unpaid bills - Tax payments - Amount shifted overseas to bring back - Amount captured through rampant corruption.
Enabling the country to bridge the current account deficit instead to run the country on recurrent bail out packages one of the Economic professor clarified.
In first attempt give ‘defaulters’ amnesty-dead line to Bring Back Country’s Money, failing which the trial will be instituted against them with no clemency or any waive by the court & concerned institution.National Accountability Bureau (NAB)
NAB as an independent institution with full authority and empowerment reporting to work under the supervision of Supreme Court of Pakistan with day to day progress to avoid of any political influence and institutional pressure maintaining credibility of the NAB itself.
Formation of a committee comprising team of High court and Supreme court judges who will work along with NABs so that transparent, impartial and unbiased enquiry must be initiated on empirical evidence.A troika needs to be constituted showing the equation as;
Supreme Court nominated judges + 3rd Political force + NAB = Recovery of outstanding dues from the defaulters.
If we ask the govt. to ensure recoveries, we see rare honesty & courage in yielding any result so as the last resort to involve Supreme Court to act as a watchdog the whole recovery process asked by the audience replying a question raised by others at National Economic Forum.We can’t trust in either Premiership or Presidency so 3rd political force should ask Supreme court of Pakistan to form a body of judges who will work along with NABs for screening and scrutiny the accounts of Political leaders and Business magnates who took loans from different Banks but failed to pay back and later they got the whole sum or part thereof written off – State Bank of Pakistan however has the detailed list of bank defaulters.
Hundreds of cases of misappropriation and serious embezzlement in govt. departments are lying unattended & unsettled that’s had been dumped designedly on different plea by influential politicians all such cases must be unearthed.
Enabling NAB to work with impartiality helping the country to recover national money, money of the people, money of the country & money of the tax payers, added further by one of the participant.
Majority are of the view while discussing how to fill the empty National Kitty they asked to get the looted money back to the country, a very categorical reply from the participants.The modus operandi, that NAB will issue notices to the defaulters who availed huge loans from different Banks in the country against different “Projects & Family names” they did not pay back to the bank and later got it written off.
The question appears that under whose instruction and authority it was written off - Status of the authority who waived off and up to what extent – The whole amount or part thereof. And the reason that justified to be written-off the billions & trillion of amount really obnoxious & cruel.
NAB will collect the money back & deposit into National exchequer, facilitating the country to fill the yawning gap of Fiscal Deficit and persistent gulf in between Govt. Revenue and Govt. Spending, the majority believe.NAB will collect facts and figure of ‘Loan defaulters’, ‘Unpaid Electricity, Gas and Telephone bills’ & ‘Tax evaders’ & for ‘Corruption’ cases from State Bank of Pakistan, Ministry of Electricity and power, Federal Board of Revenue & the cases already lying unresolved with NAB respectively.
The Supreme Court (the honorable court) will notify the concerned ministry and department to provide an updated list to NAB – role of 3rd political force & Supreme Court nominated judges will closely be monitoring the NAB working strategy at cutting edge level and an ‘end to end’ watchfulness of course will guarantee the outstanding recoveries.Current political apparatus of Islamic Republic of Pakistan spanning around PML-N & PPP are identified as the two sides of the same coin, a general perception among every walk of life that both the party ‘political outlook’ reflecting the same shades.
And in broad spectrum of public opinion giving pessimistic and negative instead positive and optimistic impression, failure to establish any credibility, no visible performance has been demonstrated in favor of the country though five months of PML-N has been completed yet majority don’t see any meaningful role but woeful who is in power.Running the country on bail-out package from internal and external resources is not a rational & prudential, taking loan one after another and putting the country with more loads of loans resulting making it weaker & unhealthier.
In wider sense ‘reliance on loans’ is treated as damn indictment refers incompetency & ineligibility of treasury benches seems unable to formulate adequate policy and procedure that’s may suit and fit to generate revenues and can produce for long term economic viability instead to use ‘loan’ as a tool to prosper the economy.The trends to uplift the fragile and feeble economy through loan amount or taking more loans to pay off previous loan in order to keep the economy wheel running, obviously not a sensible but manifests a lunatic & weak planning as stated.
The govt. should focus that how to reduce its unnecessary expenses and generate more money, the Economic pundit in the govt. knows what those unwanted expenses are?There are ways & means to rein unnecessary expenditure & if govt. is rigid it can limit its sprawling expenses. It must shorten and the focus must be on that expenditures that heighten economic growth, such as infrastructure, research and development, education and health expenditures.
As far as fiscal policy it is used as an instrument for alleviating poverty and income disparities - Reduction in poverty and income inequality though has been the exhilarating plan of the government (since past many years) but due to wrong economic policy & believing only to support the project through loaned amount it could not accomplish. Instead the loaned amount to use at the meant site went misused or ended the project on paper, resulting poverty and income disparity further manifold.
Not only the loaned amount is abused even the aid received from different agencies from European states, NGOs and UNO/ US AID with the only aim to providing basic amenities for poor segment did not invest honestly, the claim as such eliminating poverty multiplies further with more agony and frustration gave birth of have’s and have’s-not due to incoherent planning & fund misappropriation.
‘Cut your court according to size of cloth’ to spend only as much money as you can afford – this proverb fits to the ministry of finance who prepares country budget is well familiar with the size of our revenue and govt. spending so the allocation should be aligned accordingly for development program instead to pamper the projects through loans.
Does it not humiliate & embarrass you when asking loan to run the country; to bridge the gap of your budget deficiency, to pay off your previous loan, to maintain the extensive gap of Pakistani currency with dollar & to pay off your import bill? Asserted by Economists debating in seminar emphasizing multiple options to cogitate that how we can generate money, he added.Revenue collection
Expand recovery parameter through “honest tax payment” like Property tax, Agriculture & Farm tax, Vehicle tax & Manufacturing industry taxes –Levy tax on leading export items and on Import of luxurious items, imported cars & other expensive & lavish items that’s may not impact the middle and lower classes who are already in the hardship because of the soaring prices of livelihoods getting them inaccessible.
Gold imports still have not been included into tax net it’s a big revenue generation head.
Regarding public expenditure always outpaced the tax revenue as expenditure increased from Rs500 billion in 2002 to Rs.13000 billion in 2012, the government can take immediate measure to curtail unnecessary spending & cost cutting exercise at least we can reduce at maximum level if not cease, Economic professor stressed for Govt. role.Government Spending in Pakistan increased to 2475567 PKR Million in 2013 from 2102526 PKR Million in 2012.reported by the State Bank of Pakistan.
As per State bank of Pakistan (SBP) monetary report issued in Sep 2013 states “One of the implications of these conditions is that the economy has struggled in reducing and financing its domestic and external deficits. A relentless increase in fiscal borrowings and a secular decline in both domestic and foreign investments are only symptoms of structural issues” the report said.
Moreover, the increase of Rs1446 billion in budgetary borrowings from the banking system during FY13 was almost Rs1 trillion higher than the original target.
Govt. tendency to capture more lending from SBP no doubt leaves serious implications for macroeconomic stability because the bank’s ability to lend to the private sector for long term has been diminished, bank loosing corporate investment due to frequent and high rollover of government debt being fed by SBP.
Again a considerable increase in public debt by SBP gives a weak revenue generation on SBP part, it indicates that fiscal borrowings from the SBP goes continue, which carries inflation risks.
And even commercial banks due to govt. unhealthy practice, loan taking phobia confronts with ‘capital adequacy requisite’ by SBP, the crucial stage for the bank crops eventually where banks closes its business or go merge with multiple banks this is because of ruling elites, political workers & businessmen using political influence, jolts the bank's structure.
Towards Federal Board of Revenue (FBR) there has been a consistent gap between budget targets and actual collection in the last few years, the gap of Rs445 billion in FY13 was exceptionally high. In fact, this is more than the gradual increasing shortfall of Rs349 billion during the last five years. Not surprisingly, therefore, the estimated fiscal deficit of 8.0 percent of GDP in FY13 was considerably higher than the budgeted target of 4.7 percent of GDP.
The current scenario of PML-N where the first 3 months of the govt. (July – September) witnessed Rs.293 billion budget deficit owing to lower revenue collection and higher expenditure. It could tune to Rs.374 billion deficit but provinces had a surplus Budget of Rs.81 billion that reduced the burden of federal govt. while meeting its expenditure account.Govt. collected an amount of Rs.800 billion tax & non-tax revenue during July-Sept. period of the current fiscal year. The target for fiscal deficit 2013-14 has been set at 6.3 percent of GDP giving the nation impression that settlement of the outstanding stock of energy sector circular debt, reduction in electricity tariff related subsidies, and introduction of some taxation measures revenue collection has been targeted by Rs2475 billion by FBR, highlighted in SBP reports.
Elimination of all exemptions and implementation of a fair tax system will encourage better tax compliance in the country as agriculture sharing in GDP still has 20% which is less than 1% in tax revenue.Govt. spending recorded at Rs.845 billion in July-Sep, where it transferred National Finance commission (NFC) award Rs.323 billion to the provinces leaving an amount with Federal govt. Rs.476 billion.
PML-N in its manifesto had convinced that they will take stern action against the thieves of Electricity- Gas & Telephone bills & will recover the huge sum which is unpaid by the defaulters. People are looking him that how serious PML-N is?Recovery of Unpaid Electricity - Gas & Telephone Bills
Regarding revenue generation – Implement the law to book the defaulters who did not and are not paying Electricity, Gas & Telecommunication Bills since decades or if the law is there enforce it for immediate recovery.
“Kunda system” – A serious and unpardonable crime - stealing Electricity and Gas connection with undocumented deal, bring the culprit book to justice & public them so that other in line may not dare to do the same error.
There are many ‘kundas’ hanging from the live wires of the main electricity lines stealing electricity across the country in all big & small cities and villages.But PML-N seems silent in removing these illegal connections, arresting the defaulters & putting them behind the bar, compelling to pay off Electricity bill getting recovery of outstanding amount of Rs.450 billion which is just against Electricity a press report.
CMs of all provinces should arrange consecutive raids to nab the culprits legalize their electricity connection and penalize the law-breaker, recovering the charges on pro rata basis for the days they used illegal connections.
CMs of all provinces should arrange consecutive raids to nab the culprits legalize their electricity connection and penalize the law-breaker, recovering the charges on pro rata basis for the days they used illegal connections.
While for Gas & Telephones comes in thousand billions, Govt. must use its muscle to recover and take punitive action against the defaulters of utilities.NAB at this juncture should ask detail of defaulters from related ministries and govt. departments to recover such huge amount payable against Electrify – Gas & Telephones bills.
Unequivocally recovery of “Utility Bills” will bring a good chunk of money to national treasury; immediate action indeed required to nab the culprits and validate the laws once for all.It is imperative to start massive crackdown on power theft, a drive had been initiated in some part of the province in Punjab when PML-N took its office, lasted for few weeks and ended in fiasco such showable action is not the remedy, the thieves again has been active.
Cover this rising criminality through mobile court, raid it and give verdict on the spot, severe punishment indeed is the need of the day for commercial set up, confiscating their property and black list them for 5 years, put them in jail & impose heavy penalty divulge their name and public to give a lesson for others.Provincial and National assembly should ask the MPAs/MNAs of their related constituency to submit report on monthly basis for the action taken against power theft cases and recoveries thereof – A bill in the assembly to be passed where duty of MNAs/ MPAs to be fixed.
In every provinces Sind – Punjab – Baluchistan – KPK – FATA - Tribal & other administrative areas are visible where KUNDA system looks like a web, sprawling strings of live electric wires crossing under & above giving condensed netting over the city & villages.No more freehand otherwise KUNDA mafia which has mushroomed and devoured a good chunk of utility bills unpaid have pushed the country being one of the main reason of leading power crisis, the rigorous measures to amend the violator who is gobbling other shares by not paying Electricity and Gas bill.
Not only the “Electricity and Gas” had been unpaid by individual and the entity, there are MNAs/MPAs & Govt. Secretariats - PM & President Houses - CM Houses, High court & Supreme court in four provinces – Governor Houses - Ministries and Autonomous bodies - Public & private offices - Personal industries of govt. officials are the defaulters who did not pay neither Electricity nor Gas Bills & even did not pay Telephone bills too but still availing the facility.NAB can obtained the list from Ministry of Power & Communication, it’s a computer age we are living with information technology dynamics so data accessibility is not the issue it can be achieved through the system just in one click.
Ill-gotten money taken fraudulently & transferred in personal account in Overseas
Another measure to get the ‘money’ back to the national kitty particularly from PPP, PML-N and other Politicians who plundered national wealth and shifted in their personal account being maintained in overseas and in the country as well.
Money gained through illegal means, misappropriating national accounts & Kickbacks during their tenure in the govt. and transferred outside the country required returning in Pakistan.
Facilitating the country to consume/ invest for the welfare of the masses giving the nation a welfare state & can entail good governance the logistic required to maintain.The Economist iterated that how to recover the money, they proposed to promulgate the law getting money back to the country exchequer without any punishment to the wrongdoer - Officially announce a dead line to deposit such amounts in national wallet.
Those who are involved will be exempted from any legal action if amount is returned in given time frame and the names of the plunderer will not be publicized but will be kept as official secret & not a single question will be asked for.Failing which the Govt. has the right to take severe action whose names are already available with the NAB & the defaulter will be tried.
Giving amnesty, the major chunk of deposits will be helpful to inflate the national treasury which is being stuffed through consecutive loaned amount or meeting other heads of economy.
Loans taken by internal Banks & later written off abusing power & wield political influencePML-N, PPP and Business Tycoons had taken heavy loans from multiple banks (in the country) against personal business those had not been returned to the Banks and later they got the loan written off by then govt.
The loan achiever got it approved when PPP & PML-N (vice versa) were in power, one govt. got the loan approved and next govt. got it written off what a tyranny & betrayal with the country, such notorious act interprets MUK-MUKA (mutual understanding).The mischievous practice were continued, instances are there where we can see that how astutely the heavy amount of loan had been availed and later waived off without paying back to the Banks.
Not only PPP & PML-N but other ‘top most business tycoon’ & ‘Opportunist, Abettor & Collaborator’ having association with political parties also en-cashed their affiliation & became the beneficiary.NAB can ask detail of such bank loan defaulters from State Bank of Pakistan, a colossal work indeed of SBP & NAB helping outstanding recoveries.
Registry of the Properties into Tax-net to cover property taxBring all the properties into tax net sprawling across the country undocumented. Not only politicians (MNA/ MPA/ Senators/ PM/ CM/ President) but Govt. officials in ministries/ Secretariats – Industrialist - Business tycoon - Feudal & Big fishes who did not disclose the real property they have?
FBR & concerned ministry need to do reconciliation & conduct physical verification of the property so that every yard of land may be incorporated in ‘property tax net’ no-doubt it’s a one-time exercise to update the system with correct statistics of properties such as Agricultural and Farm lands’ ‘Bungalows & Houses” Mills & factories, Industries of different kinds needs to capture under tax-net that’s will be easy for FBR to collect property tax.
The country needs money to run by its own resources instead to depend on borrowed money & it is advisable always before a good economist who prefers to run the state without external pressure and loads of loan.
Get the list from Federal Board of Revenue the list of ‘tax evaders’ who does not & did not submit their income-tax-returns to govt. Pakistan since decades.Such initiative will keep us away from multiple loans not only the nation will prosper but the people also will get their right to live with mandatory facilities asserted by the students joined open discussion with professor and lecturers organized by private media in Karachi.
Increasing Electricity tariff - Increasing general sales tax (GST) and increasing prices on fuel are not the appropriate and conducive way to fill the ‘treasury stomach’Action taken by PML-N is being termed as a betrayal with the feelings of a common man who were expecting from PML to diminish the crises in which the poor segments have been confined with wrong policy of PPP govt.
People urged to know the promises did by PML-N that he will get the recovery of Rs.600 billion from tax evaders through FBR & also will recover Rs.450 billion power pilferages.
Thus empty slogan of good governance, inequitable distribution of allocation, the lack of Infrastructure and resources in education, health and other social sectors are the biggest causes of poverty.
Whilst increase in educational and health expenditures results in quality and skilled human capital which accelerates economic growth and improve the living standard of common man added the Economist.
Since increase in development expenditures lead to high investment and productivity in the country that result in high per capita income and improving the standard of living in the long run.
Hence the govt. should do strategy to mobilize internal resources into productive way, exploit the economic potentials optimally enabling employment opportunity to rise, ensuring law and order situation stable to open more avenues for foreign investment and keeping the internal investment uninterrupted.
Reducing govt. spending such as international travelling in group of 30-40 people and lavish donation from the national treasury,
The record shows that army of MNAs/MPAs & team of personal servant, house maids, son, daughter and In-laws have been travelling on international tour using national money for their personal visits & terming official visits (an open lie)
What a ridiculous how more we are sincere to the country? Asked by a seasoned politician discussing how we can reduce govt. unnecessary expenses to avoid of loan.
A press reports that PPP in its tenure had made 133 foreign visits that massive amount of Rs.2.4 billion was spent from the meager resources of national exchequer by former President Asif Ali Zardari and two former Prime ministers Youssef Raza Gilani and Raja Pervez Ashraf
According to details from the Foreign Ministry former PPP President Asif Ali Zardari made 16 private visits to Dubai at government expenses while Gilani visited Britain 2 times. Ashraf during his short nine months tenure made 8 foreign tours.
Here we refer the visit of Ex-president Asif Ali Zardari who visited India at the tomb of Sufi Saint Khawaja Moinueedin Chisti where he donated $1.million – from national kitty.
We have other hysterical expenses made by PML-N President of Pakistan Mamoon Hussein visits for Hajj accompanied by a 30-relatives entourage includes President, his wife, son, daughter in law, grandson, granddaughter, sister, protocol officer and several others.
PPP Prime Minister Raja Pervez Ashraf visited India at the Dargah mausoleum of revered Sufi saint Khwaja Moinuddin Chisti includes Ashraf who was accompanied by his extended family members and officials. Along with him there were his personal cooks, mali, watchmen, house maids (male/female), drivers. Son, daughter and in-law’s family.
PPP Ex-Prime minister Raja Pervez Ashraf, who is elevated from middle class family visited London on official visits along with his son, daughter and in-laws where he spent lavishly Rs.4.44 million, left staffs of hotel and shopping center’s aghast.
He spent millions of Pounds on hotel accommodation and shopping, 26 rooms in Berkeley Five Star Hotel at Knightsbridge in central London for Prime Minister and his family’s four day stay. Six rooms were hired @ 1200 Pound per night that cost national wallet 28800 Pound (Rs.4435200/=) a press report.While the other 20 rooms were hired at 800 Pound per night which had cost national kitty 64000 Pound (Rs.9856000) for four nights stay, official added.
The newly married couple, son and daughter in law of Prime Minister, relatives and friends of PM were also accompanying the official visit in London, generally such hotel is used for king and queen of Arab Royal families but our leader who belongs to developing country Pakistan abused his authority gave net loss to the country exchequer.Can PPP justify why they used national treasury for personal visits?
Allocating a separate amount against discretionary fund and its misuse giving pressure on national treasury such fund should be ceased to control unnecessary expenses of the govt.Detail of loan so far PML-N has taken from internal and external resources:
The 1st bailout package PML-N received from Saudi Arabia - Saudi Arabia is expected to extend a bailout package of about $15 billion to Pakistan’s highly indebted energy sector by supplying crude and furnace oil on deferred payment to resolve the chronic circular debt issue.So did PML-N the penchant received $15.billion dollar – Has this loan been spent to cope over the power crisis what Saudi Arabia highlighted in its report or PML-N has transferred in its personal wallet, asked by people in a street interview conducted by media on the issue of ‘why our national treasury is empty’?
PML-N has planned to receive $ 8.336 billion foreign loans during the ongoing financial year 2013-2014 in order to improve the balance of payments, provide budgetary support and stabilize the exchange rate.The govt. will receive $ 2.779 billion from Asian Development Bank, World Bank, Islamic Development Bank, OPEC and others during the present financial year.
The debt inflow worth $1.812 billion will come from the US, the UK, Canada and China. Pakistan will receive $2.21 billion from International Monetary Fund (IMF) and $500 million from Euro bond.Similarly, the country will receive additional $532 million from Islamic Development Bank and $500 million from commercial banks.
Thus, the total debt inflow will stand at$ 8.336 billion during the current financial year.The International Monetary Fund (IMF) $6.7 billion loan package for Pakistan approved to revive its ailing economy – A three-year program helping the country to rebuild its reserves and prevent a crisis in the balance of payments, slashing costly subsidies on electricity and sending out notices to 10,000 delinquent taxpayers.
Pakistan has one of the lowest tax-to-GDP ratios in the world. The IMF wants to tackle rampant tax evasion by the wealthy elite.Finance ministry took a sigh of relief as new loan arrived in time when Central bank had only about $5 billion left in foreign currency reserves, enough to cover less than five weeks of imports.
The Asian Development Bank, one of Pakistan’s major lenders, estimates that Pakistan needs $6 billion to $9 billion to meet its obligations, including about $5 billion in outstanding debt on an earlier $11 billion IMF loan package.Pakistan averted a balance of payments crisis in 2008 by securing the $11 billion IMF loan. This was suspended two years ago after economic and reform targets were missed.
Pakistan gets $540 million immediately, and the rest will be disbursed after regular reviews of the program, the Fund said.Finance Minister Ishaq Dar said that from Coalition Support Fund (CSF) about $325 billion US has agreed to disburse out of $1.4 billion CSF inflow expected this year.
US plans revival of aid to release more than $1.6 billion in military and economic aid that had been suspended due to tense created between US & Pakistan over the covert raid that killed Osama bin laden and deadly US air strikes against Pakistan soldiers, a press report.The official documents stated that the IMF loan, under the Extended Fund Facility (EFF), was being provided only for balance of payment support.
If we see the trail of loans being taken by PML-N to run the economy of course it’s not a good sign, taking more loan-strategy weakening our economy height rather destabilizing & forcing to the brink of bankruptcy.
FBR has identified three million people who should be paying taxes but are not. An immediate Rs300 billion can be added to the national exchequer if each of these tax evaders, thieves robbing the state of its dues, is made to pay even Rs100,000 although many would be falling into a much higher tax bracket PTI said.
Additionally, there is about 35 percent sales tax evasion in the country and if this is stopped, Rs250 billion can be recovered.
Exempted sectors such as property and agriculture must be brought into the tax net. The Capital Gains Tax must be introduced on property and the stock market and the federal government can take this measure.
Pakistan public debt has reached over Rs14, 000 billion, which was Rs.6044 billion in June 30 2008.SBP Governor said the country needs to pay back $3 billion to the IMF during the current fiscal year against the total received inflows from the Fund to the tune of $2.2 billion in 2013-14.
On borrowing from the SBP for meeting the budgetary requirements, Secretary Finance said the Govt. had agreed with the IMF not to cross the ceiling of Rs2.67 trillion benchmark of total borrowing stocks from the SBP.Capital flight - In a statement from SBP Governor Yaseen Anwar said about $25 million foreign exchange going out of the country on daily basis through airport Quetta, Islamabad, Lahore and Karachi and according to Governor they are signing an MOU with Federal Investigation Agency (FIA) to check suitcases to plug the holes SBP Governor told the Senate Standing Committee on Finance.
He further mentioned that flight of capital has been major issue for foreign exchange reserves and exchange rate but such outflows were previously estimated at between $5-10 million a day, $750 million a month or $9 billion a year which is equivalent to the country’s total foreign exchange reserve SBP Governor pointed out.The successor PML-N keeping the people dreaming with rosy sketches needs to provide a concrete solution & result oriented delivery to maintain good governance and giving the countrymen a ‘welfare state’ so that the vision and expectation from PML-N may achieve concluded the session of Economic forum organized in Karachi.
Most of the action taken by PML-N seems on ad-hoc and dispose-off basis like plan to dispose-off 64 public sectors industries which according to PML-N are sick units and yielding no value and money for the country said by Finance minister Ishaq Dar.There is constant uproar at public forum appearing in print and electronic media about Pakistan Steel Mills, Pakistan Railway and Pakistan international airline that the govt. should not have privatized instead to restructure and through good reforms it could be revived.
We could reduce capital and operating expense, could slice the penetrated nepotism and favoritism, could cease political appointment & redress political influences, could mobilize available resources with realignment and readjustment, streamlining correct policy and procedure favorable to the institution instead to thrash them out-rightly said by a group of people discussing at open public debate for public sectors privatization organized by private TV channels & survey report in print media.An impartial administrative and technical analytical report from experts would be more helpful to realign, reassess, reevaluate in terms of product and profitability for restructuring such units if govt. was serious.
The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) also stressed to ensure & maintain transparency & special care while privatizing state owned entities (SOEs), human and strategic cost should also be in limelight as some enterprises are vital for national security while other generates million employment opportunity in the country FPCCI stressed.The PML-N had promised to bring new laws or replacement of the old ones regarding corruption and waste of public resources; the main among these promised laws was to make a new law to set up a fresh body of accountability, with more teeth, to fight corruption. Where is that law?
Regarding energy crisis – payment of hefty amount Rs.503 billion against circular debt as soon as PML-N assumed its office the first payment it made to Independent Power Producers (IPP) under the name of circular debt.A Dracula sucking the blood of national economy, though PML-N paid but it was an interim payment only up to May 2013 and now again it has been piled up where govt. needs to pay more approx. Rs.500 billion for the accumulated figure up to Oct 2013 said by one of the official on condition of anonymity in ministry of finance.
Importance of 3rd political force will obstruct and not give a free hand to the Treasury Benches to impregnate policy and procedure according to their wishes but will consider & prefer the betterment and advancement of the masses first and will keep the economy at right track instead to push the country towards brink of disaster or keep it running on loan and loan.
Pakistan needed a clear roadmap for a sustained turnaround backed by ceiling on central bank lending to the government - increased revenue collection - reduced expenditure and abolishing unnecessary exemptions as well as subsidies to revitalize the limping economy – enhancing tax collection parameter – incorporating agriculture into tax net – putting gold imports in tax net.
And more importantly to recover all outstanding loans taken earlier from the banks and later had been written off - Unpaid utility bills – recovering misappropriated amount taken fraudulently from national account and kickback shifted to overseas personal account.
Getting the heavy chunk of money back into national exchequer will certainly be a substantial support to boost and boom the economy as increasing interest rates have not prevented even the flight of US dollars from Pakistan as SBP Governor mentioned in his meeting with senators on finance.