Desperate Time Desperate Measures - A differential view of Pakistan's Economic

[American Pakistani]

I agree that import is one od the biggest reason but simply taxing import will not work as other nations will tax your export and on the net basis we will be still at deficit so we have to implement other tools along with taxation ...

No need to tax them directly, just tax them indirectly...example don't tax the good itself, tax the transportation company who transport XYZ goods.

 

[The Accountant]

Do you have any good ideas to resolve each one of the problems that you have identified?

I will create separate threads for discussion on resolution of each issue and offcourse i will not have all the answeres and will need help from you guys for further suggestions

No need to tax them directly, just tax them indirectly...example don't tax the good itself, tax the transportation company who transport XYZ goods.

Nice idea.
I will cteate separate thread on ideas to supress imports along with other issues and at that stage we can discuss specific ideas such as yours including how to actually implement them in practical life.

 

[shahbaz baig]

Thanks for your input. I almost forrgot the electricity mismanagement issue.so i guess we are almost done with the realization of all the problems hurting us at specially at macro economic levels and we can now move to next phase i.e. finding solutions.

However it will be a tough and important tasks and will require expert opinions

Thanks to understand the mismanagement of electricity as you mentioned that layman should also understand so let me do the math for it.


Right now Pakistan has 33MW thousands installed capacity of generating electricity, our demands is 24MW thousands but transmission or storage system can only hold the burden of 19MW thousands.

Without resolving it Pakistan can't be able to reduce big chunk of circular debt which surely effect industry. Without resolving it final production cost of finished product will always be expensive then Bangladesh & india, without resolving it Pakistan can't stand in competitive market regionally. It's a major point to resolve in order to boast not only old but new ideas I.E made in Pakistan products even without compromising the quality.

We can't & should not ignore it.

 

[fitpOsitive]

I say, PM Imran is targeting huge investors, but not strategic investors. By strategic investors I mean those guys who open gates of money. For example, a company that trains freelancers(like arena multimedia ) , a company that brings money flow from outside to inside(like PayPal or transferwise) etc.
I say, he is targeting elites, while ignoring middle class (which is most educated too), lower class(which is most passionate, and ready to jump in any arena) and mid and lower level businessmen(who is toughest, and survives any weatger). Bring these guys on driving wheel, and see the difference. Pay attention to their concerns, and see how Pakistan beats many countries in wealth (Bangladesh did that).

As a First step, break Provinces into smaller units, give more power to each, connect every part to sea ports, divide electricity generation and distribution systems among cities(like every city has two companies who are generating power for whole city and suburbs, and both are private, working as per govt regulations).

Allow people to generate electricity through solar and share that with national grid.

Make investment companies for development projects. For example, if you want to build a dam, define project, estimate the costs, sell the shares to people(yes general public) and share the profit to them each month or year. Give them tax rebate. Allow black money as well.
You don't need to borrow money from anywhere.

But, her kam k liay aqal, skill, or niat ki zaroorat hoti hai.
Or badmashia k hotay yeh hoga nahi.

@The Accountant

 

[VCheng]

I will create separate threads for discussion on resolution of each issue and offcourse i will not have all the answeres and will need help from you guys for further suggestions

I look forward to that thread more than the discussion here, to be honest.

 

[The Accountant]

I say, PM Imran is targeting huge investors, but not strategic investors. By strategic investors I mean those guys who open gates of money. For example, a company that trains freelancers(like arena multimedia ) , a company that brings money flow from outside to inside(like PayPal or transferwise) etc.
I say, he is targeting elites, while ignoring middle class (which is most educated too), lower class(which is most passionate, and ready to jump in any arena) and mid and lower level businessmen(who is toughest, and survives any weatger). Bring these guys on driving wheel, and see the difference. Pay attention to their concerns, and see how Pakistan beats many countries in wealth (Bangladesh did that).

As a First step, break Provinces into smaller units, give more power to each, connect every part to sea ports, divide electricity generation and distribution systems among cities(like every city has two companies who are generating power for whole city and suburbs, and both are private, working as per govt regulations).

Allow people to generate electricity through solar and share that with national grid.

Make investment companies for development projects. For example, if you want to build a dam, define project, estimate the costs, sell the shares to people(yes general public) and share the profit to them each month or year. Give them tax rebate. Allow black money as well.
You don't need to borrow money from anywhere.

But, her kam k liay aqal, skill, or niat ki zaroorat hoti hai.
Or badmashia k hotay yeh hoga nahi.

@The Accountant

I really like the iea of public sector investment through profitable public projects and money to be collected from share market. There are many methods for this approach such as venture capital industry, public private partnership or through securing private investments through sovereign guarantees.

InshAllah I will dedicate a whole thread just capital sourcing for development projects.

 

[fitpOsitive]

I really like the iea of public sector investment through profitable public projects and money to be collected from share market. There are many methods for this approach such as venture capital industry, public private partnership or through securing private investments through sovereign guarantees.

InshAllah I will dedicate a whole thread just capital sourcing for development projects.

Niat chahiay her kam k liay, Jo logon ki hai nai.

 

[CrazyZ]

Its a complicated problem but I think the issues can be broken down into these action items:


1) A central economic plan emulating the East Asian nations. The East Asian economic boom was driven by state backed for profit firms (SBFPF) following a government plan to push exports. Forex was considered precious by national governments and hoarded. SBFPF's like Toyota or Samsung had to follow the commands of government planners to push exports. They were indirectly controlled by the state and did what they were told. In exchange they were provided with loans and grants for factories on favorable terms. If they suffered a loss, the government would make them whole with continued backing (fear of loss and risk was lessened). Profits were reinvested into expanding the business or into research.....leading to continued growth. Research on technology on productivity and efficiency was shared by the government with the SBFPF's.


2) Internal security and reforms to diminish or remove economic policy from the hands of the elected governments. Zardari regime did a lot of damage to peace and tranquility in Pakistan by banning the death penalty and releasing known terrorists from jails to appease the human rights folks. The Sharif regime did a lot of economic damage by taking loans to keep the PKR artificially inflated.

3) Human resource development. Technology can help...digital learning with a national testing regime. A PHD education.....lectures and books can be put in a modern tablet. Spending a fortune on schools and teachers is not as critical many assume.

4) Financial sector reforms to increase investment as a percentage of GDP. Foreign investors should be given low tax incentives for capitol FDI. Increase duties on real estate and gold to fund a local wealth fund to invest in Pakistani stocks, businesses and start ups.

5) Infrastructure development......In particular water energy and transportation. CPEC will help greatly with this. Energy independence has to become a national goal. Mass transit powered by local energy sources and development of our shale oil/ gas a key policy objective. Our Forex issues would disappear if we didn't import energy on the current scale.

 

[Sidacca]

The problem is tax collection.... Increase tax net rather than tax rate.... Cash base businesses are enjoying tax free environment..... Government need to adapt modern tax collection techniques which is not possible while having babas in FBR.... Modern qualified and young blood need to be inducted.