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9 million overseas Pakistanis earn Pakistan more income than 200 million local Pakistanis

That Guy

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Our tax system stresses an already squeezed middle class. The real challenge is broadening the tax base so that the ones with the greatest hold over the economy actually pay up.
That's mostly because Pakistan's tax laws are broken. Pakistan had a huge middle class that it can tap into, as well as wealthy Pakistanis who constantly and consistently avoid taxes by buying property in foreign nations like Dubai.
 

Michel Niesten

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That's mostly because Pakistan's tax laws are broken. Pakistan had a huge middle class that it can tap into, as well as wealthy Pakistanis who constantly and consistently avoid taxes by buying property in foreign nations like Dubai.
that’s what happens everywhere unfortunately. The richest people pay the least of taxes. And get away withit, because tax laws are designed to benefit them. Not the lower income people
 

Goritoes

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Stronger Tax reforms need to be introduced, Overseas Pakistani's sends money to their families which helps them and to some extent the Country, but again what we need is that Pakistan to build it economy based on Exports, Tourism, and other stuff, remittance is good but don't rely on it.
 

Vapnope

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I am not sure how the comparison is made. For example, a company i worked for had 30 billion revenue but zero exports. There are 650,000 retails shop in Pakistan which have zero exports so how exactly their earning is reflected in how much Pakistanis earn inside Pakistan?
 

FuturePAF

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Traditionally countries have found a way to minimize external conflicts, spent money to modernize their agriculture production, and invested the profits from the excess agricultural productivity into industry. Our agricultural output is a quarter of the global average, and 60% of the work force depends on agriculture. Modernize the agriculture will pay off multiple folds and broaden the tax base, from which we can invest in the dams, power grid, and modernization of our industrial ventures, such as Mining, so we can explore for and mine our own resources such as the Reko Diq Mine.

Incentives need to be introduced to get investors to modernize our agriculture and the value added chain associated with it rather then build more real estate.

Secondly, affordable quality housing (5 story apartment buildings) should be incentivized rather then single family homes, to maximize density in a sustainable way to maximize the use of public services (like expensive public transportation projects) for the cost being spent on them, lowering the per ride cost and ending the need to subsidize the service. We should study the example of the Haussmann rebuilding of Paris.

The government should not be in the business of subsidizing a lot of businesses and should be selling off some percentage of each of its assets to private firms to take the burden off the nation. These private firms can bring in experts to build up the business ventures, and both can share in the profits, which for the government will help make it a self sustaining business at the very least; ending subsidies.

A lot of the debt should be taken on by private companies and in return they should be given contracts in a shared risk shared benefit model. The amount of interest we are paying on some of these loans for potentially subpar infrastructure is outrageous.

There is so much Pakistan leaves on the table in terms of making our industrial and agricultural processes more efficient that could help raise productivity or at least cut input costs, especially of import goods like fossil fuels. We also need to foster our own industries, especially the media, so our people stop consuming Bollywood, and spending on their products while we have another set of products to export to the world.

Attracting FDI should be a top priority. Should Pakistan get out of the FATF grey list, it should focus on raising its bond rating and refinancing its foreign loans to a lower interest rate, saving money annually. Also, creating or revamping our banks overseas to attract members of the diaspora and others should also be prioritized. A ROI for someone putting their money in the bank should be lower then what Pakistan had been offering in its bonds but higher then average returns in index funds (like those following the S&P) is a good way to attract a lot more investors. Getting included in emerging market pension funds is also a good way to attract investment, which is something India has been doing for at least a decade if I remember correctly.
 
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HRK

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I am not sure how the comparison is made. For example, a company i worked for had 30 billion revenue but zero exports. There are 650,000 retails shop in Pakistan which have zero exports so how exactly their earning is reflected in how much Pakistanis earn inside Pakistan?
thread title is stupidly selected basically ignores the basic economic concepts of GDP & GNP
 

Syed1.

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India earns $80b+ from remittances its not a bad thing. Yes inshallah exports will climb too. This year exports of goods+services are around $30b so around par with remittances, next year exports should be closer to $35 (remember half the world was in lockdown during FY21 and we ourselves were grappling with covid waves).
 

PradoTLC

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With a population of 220 million, Pakistan productivity measured in exports is very pathetic. This shows us to be lazy and without any vision.

Overseas Pakistanis ( myself included) send money to family back home from our savings. Yes, that 27 billion dollar is our savings that we send to our country.

Also, those Pakistanis living in Pakistan are those who would not mind electing a thief like Nawaz Sharif or his daughter. Just imagine the lack of priority they have for their country that they think a man who has been stealing their money is their benefactor.

part of the reason is delusion and environment..

.out side Pakistan the work environment is unsympathetic there is little scope for bullshit hence productivity and ground reality is paramount.
Pak should encourage people to go abroad for work and permanent residency. This does it 3 favors...reduces burden on it by reducing its population, those people living and working abroad send valuable forex back home and lastly they act as a influence in the countey they go for pro pak policies and laws...india has been milking more than 50 billion dollars by adopting same strategy for years.


it also has disadvantages.. a brain drain effect happens.
 

Mk-313

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I am not sure how the comparison is made. For example, a company i worked for had 30 billion revenue but zero exports. There are 650,000 retails shop in Pakistan which have zero exports so how exactly their earning is reflected in how much Pakistanis earn inside Pakistan?
Thats called GDP. For your country it’s $270 billion
When you minus the exports from this number it gives uou domestic economy so around $245 billion

Overseas Pakistani send $26.7 billion after paying for their expenses in abroad and savings so expect their income to be 3-5x that number

Domestic earning of 220 million people = $245 billion
Earning of overseas 9 million Pakistanis = $100-$135 billion

In retrospect an average overseas Pakistani makes 15x more money than average domestic Pakistani
 

Vapnope

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Thats called GDP. For your country it’s $270 billion
When you minus the exports from this number it gives uou domestic economy so around $245 billion

Overseas Pakistani send $26.7 billion after paying for their expenses in abroad and savings so expect their income to be 3-5x that number

Domestic earning of 220 million people = $245 billion
Earning of overseas 9 million Pakistanis = $100-$135 billion
Right. A bigger issue is underground economy in Pakistan. Some experts believe that it is closer to our formal economy in terms of money.
 

Mk-313

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Right. A bigger issue is underground economy in Pakistan. Some experts believe that it is closer to our formal economy in terms of money.
IMF estimates that 20% of your economy is unaccounted from the official numbers.
 

Vapnope

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IMF estimates that 20% of your economy is unaccounted from the official numbers.
Generally that is the rule that around 20% economy is undocumented however in case of Pakistan, it may be way more than that.
 

Mk-313

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Generally that is the rule that around 20% economy is undocumented however in case of Pakistan, it may be way more than that.
No it’s not generally. They did the analysis before sanctioning your $6 billion tranche. The meetings between IMF and your Pakistani delegate are public. You can go listen to them

It’s not that hard to estimate unaccounted economy. All you have to do is follow the spending. When someone earns in an “under the table” fashion and he goes to spend it. His spending becomes someone’s income and if that person is in the system. The unaccounted money is then tellied.

The rule is someone’s spending is another persons income and at the end of the day they subtract the differences between money spent and money earned and this is your unaccounted economy
part of the reason is delusion and environment..

.out side Pakistan the work environment is unsympathetic there is little scope for bullshit hence productivity and ground reality is paramount.




it also has disadvantages.. a brain drain effect happens.
That’s 100% true. Sending your highest talent is when nations die. Because they are the only high productive part of the economy and the part that can mobilize and effectively use dead labor.

Example: a highly innovate Pakistani creates a new technology and because of his innovation he will need to set up infrastructure hire people jobs etc. and mobilize and utilize the ineffective labor

It’s like having an army with no general. Cuz every general is a soldier in someone’s else’s army
 
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