My Idea to make Pakistan one of the richest countries.

[Mr ambassador]

Its my dream to see Pakistan in G8 club .Pakistan is a poor country with rich citizens who are invisible in tax net. Riches become richer while poors become poorer due to unequal distribution of wealth. Unfortunately the state cant get tax from people due to increasing poverty .

I did a brain stroming how to fit Islamic economic system in modern economy and following ideas came in my mind. The state can alleviate poverty and can create more jobs.




Step 1: Digitization of economy for equal distribution of wealth and ToT (taxation on transaction via universal credit card)

First the state bank will have to introduce a universal credit card applicable for all bank accounts . A person will have to use one credit card for different bank accounts. Apart from this , FBR should issue credit card to every citizen as NADRA give ID card citizens to digitize currency transaction. Citizens will have to use credit card not currency for shopping, ticketing , fuelling, utilities etc. Besides it, allot taxation number with currency transaction machines to each shop, markets, restaurants etc. Collect annual tax from them based on transaction records monitored 7/24 in FBR online. This taxation is based on how much someone’s business is booming i.e 2.5% zakat on business community . one can imagine how much we can collect tax from business community and shopkeepers. There are billions of shops and can be taxed easily. Moreover the government will fix and change price of commodities online system.

It will be easier for the government to keep an eye on the pockets of 210 million citizens who has how much wealth and what is purchasing from which shop and can be taxed any time. Even the government can transfer balance from one person to another person .i.e take out zakat from rich

Digitization of economy will keep control demand and supply of currency in market . The state bank will print less currency due to electronic transaction.

Side advantages: control of illegal pricing

Direct taxation.

Easily can deduct utility bills .

Dollar will be less valuable in the market due to less importance paper currency.

Control on corruption as no one be able to hide illegal wealth due to one credit card for all bank accounts and transaction for shopping . Everything will be monitored if any government employee purchases cigarette pocket to palace .

2nd step

Citizen to Citizen loan for job creation :

Due to lack of funds , the government cant afford to give too much loans to alleviate poverty and create jobs. On other side many rich people keep their extra wealth in banks useless .I have an idea to use their money in the interest of state and citizens .Rich people can double their wealth by spending on people .

If government adopts the policy ‘’The more you give interest based loan on profit ,the higher discount rate will be given on every commodity by the state’’


Explanation : if any person gives loan of 50lac or more then it to another citizen ,the state will give special privileges to them by issuing special credit cards through which they will be less taxed and discounted on every transaction until they get their money back.


A-credit card -----5% discount rate to 50lacs creditors on every transaction

B credit card------- 8% discount rate to 1 curor creditors on every transaction

C credit card----------12% discount rate to 1.5 curor creditors on every transaction

D credit card ------continue this formula

E credit card ------continue this formula

The government will be a guarantor and negotiator between the two parties and make terms and conditions how and whom to loan at what rate. Moreover , government will set rules for debtors how and where to spend loan given by another citizen.

Note :if this rule is applied throughout the world . People will take out their wealth from banks and purchase real assets .i.e gold ,property to avoid from wealth screening and taxation . it will be too difficult to keep currency in billions in homes .Rothschild’s dollar will be toilet paper in market.

3rd step :Government to citizens business:

Federal government provides development funds to local governments . Instead of spending on infrastructure , local governments i.e mayors should do business with citizens to create more jobs and generate revenue . we have less fund and should find avenues to invest at small scale without foreign aid .

Following small projects to generate revenue at district level and create jobs

a) Build small IT centres and software houses

b) Build small rice and wheat factories

c) Build cold storage for food and fruits

d) Work on urbanization projects ( build house, apartments or shopping malls to sell it or lease it

e) Build recycling plants.

f) Fashion designing & tailoring centres for women.

In our rural areas , women don’t do jobs and are ignored due to social tabos. The local government should make small fashion designing and tailoring centers .It will increase our export in garments and textile industry.


Districts get enough funds to work on such small scale business . Besides this ,FBR will monitor and collect taxes.


4th step: computerize land records for land tax i.e ushr and kharaj :

I will suggest to computerize every inch of Pakistan and link it with NADRA. Impose annual property tax on luxurious residential , commercial, irrigated & non-irrigated areas according to their price value. Morereover , it will be easier to bring property dealers in tax net who earns in millions .

Hope any respected member will forward my noble prize winning idea to PTI finance team. May be they will find something good. May Allah make Pakistan a prosperous country

 

[UKBengali]

Pakistan can certainly increase the tax take if it was less corrupt- Imran Khan brings some hope.

However it is a fallacy to think that it has "rich" citizens who do not pay any tax, as otherwise Pakistan would be consuming much more goods and services than it currently does.

 

[!eon]

I would not pay any tax to corrupts period.

Corruption is the main problem and any other problem is secondary. Why should I pay tax, that will end up in some foreign anonymous personal account or in some offshore shadow company?

 

[Menace2Society]

However it is a fallacy to think that it has "rich" citizens who do not pay any tax, as otherwise Pakistan would be consuming much more goods and services than it currently does.

It does. There is a reason why overseas Pakistanis are more embedded along with Indians in western countries. Its market is a lot more mature than you think. Problem is it consumes but doesn't know how to accumulate and save. That's poor governance.

 

[UKBengali]

It does. There is a reason why overseas Pakistanis are more embedded along with Indians in western countries. Its market is a lot more mature than you think. Problem is it consumes but doesn't know how to accumulate and save. That's poor governance.

The premise of the article is that Pakistan can become G8 country just by making sure it actually taxes it's citizens.
Fact remains that Pakistan is still a poor 3rd world country after 70 years of independence.
It needs many decades of sustained economic growth before it can even become like say Indonesia is now.

 

[Menace2Society]

The premise of the article is that Pakistan can become G8 country just by making sure it actually taxes it's citizens.
Fact remains that Pakistan is still a poor 3rd world country after 70 years of independence.
It needs many decades of sustained economic growth before it can even become like say Indonesia is now.

I agree. Pakistan can aim higher than Indonesia.

2018-2028 - Fix economy and reach growth levels to sustain rapid development and job creation. Ages 5+ enter education system which is functional. Population control.

2028-2032 - Post year on growth of 8% plus and become a Malaysia like country. Still a bit poor but with heavily developed centres, cleaaaaannnn streets. Crime reaches new lows. Begin rapid industrialization.

2032-2042 - Start becoming service focused industry, maturing into complex exports. AI and machine learning software etc whatever is the flavor of 2030s. Settled job ecosystem and tax system leading to lower end of society to become uplifted by benefits and freebies.

2042-2052 - Focus on total cleanliness an educated employed workforce needs and deserves. Clean streets. Skyscraper cities. People living out the city might still be poor but poor now is not being able to afford satellite tv subscription. Pakistan no longer has dirty streets.

So by 2052 its a possibility to become a country like Spain/Italy/Greece.

 

[Lincoln]

It's nice to see people putting forward ideas and thinking about the situation, but the title should be a little less 'dreamy' : )

Anyways, I have few questions and problems regarding these ideas, maybe you can answer them.

From the 1st part,

• How will the Government successfully and completely digitalize all paper currency? What will exactly happen to all of the paper currency printed, that people possess, and that is stored in banks, how will the transition take place. Puts the practicality into question.
• How will the Government manage to successfully and completely issue machines to all shops and business owners so that they can charge customers via the so called universal credit cards, you have to keep in mind we are not just talking supermarkets, petrol stations or malls here but also the local and small-scale businesses like textile-related, street food market or even people selling stuff on cart to earn a livelihood. Again, puts the practicality into question.
• How will competition and subsequent price changes due to competition be able to take place if prices for commodities are to be set by the Government. As an example, markets like Chase Supermarket in Karachi charge less on certain commodities compared to Naheed Supermarket which charges more. Also, how will shops which produce their own goods and items be able to define and change the price of an item.
• Don't get me wrong, this sounds like a communist system, where the Authority has complete control over your funds. How will the Government guarantee transparency, assure you that your money wont be taken out except for tax money without legal proceedings?
• What happens in the case a person's so called universal credit card is stolen or lost, you need money for everything. Without money, you are stranded. Transport, food, leisure and other daily activities for which you need money become an issue, what will they do? In the case it is currency, the person who lost the currency can obviously go withdraw more from bank or simply take out more from his home, but in the case all your so called money is stored on a so called universal credit card is stolen or lost, all of your money is stolen and lost.

From 2nd part,

• What if the receiver of the loan fails to return the principle amount along with the interest? What happens then. I am not sure if you're aware but in Dubai, banks are hesitant to give loans to foreign people who are not fully settled because they're afraid that these people might take the loan, not pay it back and leave the country, there are incidents of that. So, what happens if the receiver fails to return the amount, by either A. scamming and making the run for it, or B. failing to invest the money and receive a significant return. How will the Government repay the person who gave the loan.
• How will it be determined that which person is and isn't eligible to receive a loan, as in on what criteria and which organization will determine this. Will the Government of Pakistan take direct responsibility in case the amount is not returned?
• How will this seemingly universal discount rate work? Will it work at any company, for any transaction? Obviously, a company will have to be a part of the deal and would want to receive something in return if it is to be a part of this. But, the universal discount rate wont be so universal, it will be limited to consumer goods sold by Governmental bodies unless all private companies operating in Pakistan are brought in for the deal in which case again, the practicality of all private companies coming into the deal is very low, so it wont really be universal.

From 3rd part,

Nothing of issue here, more power to the local governmental bodies and financing of projects through them is already a part of Pakistan Tehreek-i-Insaaf's agenda.

You can find it here, http://www.insaf.pk/public/insafpk/content/local-government.


From 4th part,


Computerization of land records has been done in Punjab for rural lands used for growing crops by the Pakistan Muslim League Noon Government. It hasn't been implemented on an urban level though. It certainly is a good idea.


Would appreciate if you answer it in a point form and make sure its formatted and not jumbled up.
Also, if we are going to make ideas, its my personal opinion that we need to mention the cons, be as elaborate as possible and not sum up the dream in less than a 1000 words, and most of all provide statistics and citations.

I agree. Pakistan can aim higher than Indonesia.

2018-2028 - Fix economy and reach growth levels to sustain rapid development and job creation. Ages 5+ enter education system which is functional. Population control.

2028-2032 - Post year on growth of 8% plus and become a Malaysia like country. Still a bit poor but with heavily developed centres, cleaaaaannnn streets. Crime reaches new lows. Begin rapid industrialization.

2032-2042 - Start becoming service focused industry, maturing into complex exports. AI and machine learning software etc whatever is the flavor of 2030s. Settled job ecosystem and tax system leading to lower end of society to become uplifted by benefits and freebies.

2042-2052 - Focus on total cleanliness an educated employed workforce needs and deserves. Clean streets. Skyscraper cities. People living out the city might still be poor but poor now is not being able to afford satellite tv subscription. Pakistan no longer has dirty streets.

So by 2052 its a possibility to become a country like Spain/Italy/Greece.

Things are easy said than done. While we agree Pakistan can indeed aim higher, we need to know how and not define goals vaguely.

Also, Greece is in a financial crisis and Italy has significant issues with Mafia related crime, so hopefully not.

 

[UKBengali]

I agree. Pakistan can aim higher than Indonesia.

2018-2028 - Fix economy and reach growth levels to sustain rapid development and job creation. Ages 5+ enter education system which is functional. Population control.

2028-2032 - Post year on growth of 8% plus and become a Malaysia like country. Still a bit poor but with heavily developed centres, cleaaaaannnn streets. Crime reaches new lows. Begin rapid industrialization.

2032-2042 - Start becoming service focused industry, maturing into complex exports. AI and machine learning software etc whatever is the flavor of 2030s. Settled job ecosystem and tax system leading to lower end of society to become uplifted by benefits and freebies.

2042-2052 - Focus on total cleanliness an educated employed workforce needs and deserves. Clean streets. Skyscraper cities. People living out the city might still be poor but poor now is not being able to afford satellite tv subscription. Pakistan no longer has dirty streets.

So by 2052 its a possibility to become a country like Spain/Italy/Greece.

Malaysia is just as well off as Greece and will catch up with Spain and Italy circa 2025.

but to even to get to Malaysia's current level will take past 2050 for Pakistan.

Like I say with Imran Khan and China, Pakistan is in a good position now but it will take many decades to even catch up with Indonesia.

 

[AZADPAKISTAN2009]

Always great to have vision and plan for betterment of society

 

[maximuswarrior]

Who was even uttering such ideas when we had Zardari and Nawaz Sharif as our leaders? At least there is hope now. People are rejuvenated and energized. We must grab this opportunity with both hands. An opportunity like this will not easily represent itself. Imran Khan must make every effort to guide the economy in the right direction.

 

[Mr ambassador]

It's nice to see people putting forward ideas and thinking about the situation, but the title should be a little less 'dreamy' : )

Anyways, I have few questions and problems regarding these ideas, maybe you can answer them.

From the 1st part,

• How will the Government successfully and completely digitalize all paper currency? What will exactly happen to all of the paper currency printed, that people possess, and that is stored in banks, how will the transition take place. Puts the practicality into question.
• How will the Government manage to successfully and completely issue machines to all shops and business owners so that they can charge customers via the so called universal credit cards, you have to keep in mind we are not just talking supermarkets, petrol stations or malls here but also the local and small-scale businesses like textile-related, street food market or even people selling stuff on cart to earn a livelihood. Again, puts the practicality into question.
• How will competition and subsequent price changes due to competition be able to take place if prices for commodities are to be set by the Government. As an example, markets like Chase Supermarket in Karachi charge less on certain commodities compared to Naheed Supermarket which charges more. Also, how will shops which produce their own goods and items be able to define and change the price of an item.
• Don't get me wrong, this sounds like a communist system, where the Authority has complete control over your funds. How will the Government guarantee transparency, assure you that your money wont be taken out except for tax money without legal proceedings?
• What happens in the case a person's so called universal credit card is stolen or lost, you need money for everything. Without money, you are stranded. Transport, food, leisure and other daily activities for which you need money become an issue, what will they do? In the case it is currency, the person who lost the currency can obviously go withdraw more from bank or simply take out more from his home, but in the case all your so called money is stored on a so called universal credit card is stolen or lost, all of your money is stolen and lost.

From 2nd part,

• What if the receiver of the loan fails to return the principle amount along with the interest? What happens then. I am not sure if you're aware but in Dubai, banks are hesitant to give loans to foreign people who are not fully settled because they're afraid that these people might take the loan, not pay it back and leave the country, there are incidents of that. So, what happens if the receiver fails to return the amount, by either A. scamming and making the run for it, or B. failing to invest the money and receive a significant return. How will the Government repay the person who gave the loan.
• How will it be determined that which person is and isn't eligible to receive a loan, as in on what criteria and which organization will determine this. Will the Government of Pakistan take direct responsibility in case the amount is not returned?
• How will this seemingly universal discount rate work? Will it work at any company, for any transaction? Obviously, a company will have to be a part of the deal and would want to receive something in return if it is to be a part of this. But, the universal discount rate wont be so universal, it will be limited to consumer goods sold by Governmental bodies unless all private companies operating in Pakistan are brought in for the deal in which case again, the practicality of all private companies coming into the deal is very low, so it wont really be universal.

From 3rd part,

Nothing of issue here, more power to the local governmental bodies and financing of projects through them is already a part of Pakistan Tehreek-i-Insaaf's agenda.

You can find it here, http://www.insaf.pk/public/insafpk/content/local-government.


From 4th part,


Computerization of land records has been done in Punjab for rural lands used for growing crops by the Pakistan Muslim League Noon Government. It hasn't been implemented on an urban level though. It certainly is a good idea.


Would appreciate if you answer it in a point form and make sure its formatted and not jumbled up.
Also, if we are going to make ideas, its my personal opinion that we need to mention the cons, be as elaborate as possible and not sum up the dream in less than a 1000 words, and most of all provide statistics and citations.



Things are easy said than done. While we agree Pakistan can indeed aim higher, we need to know how and not define goals vaguely.

Also, Greece is in a financial crisis and Italy has significant issues with Mafia related crime, so hopefully not.

Answers :

1 : Government can digitalize currency by introducing financial reforms mode of payments . E.g government start this process from shopping malls , feul stations and showrooms etc There are pocket size machines available nowadays that one can convert hard currency into digital balance. if there be electronic machines ,people start to use credit cards.i already said first state bank issue a universal credit card for banks accounts.


2: government can manage introducing transaction machines through FBR department through its policies . Shops , resturants any business sector won't get a facility electricity ,water or gas unless they change mod of payment method into electronic . There are small cell phone size electronic machines available for shops ,fruit stalls etc. So technology is available . We just bring some changes.

3: governments / business sector can fix price . Any individual can also fix it's price of his commodity . But online record or price fluctuations can be controlled by government according to demand and supply .

4: government can assure people that their money won't be deducted more than legal taxation. People can check their money on cell phones or apps. ( Everything will be online.)


4: technical issue on discount rate ....if rich people throw money for investment purposes on people . Definitely people will do more business . The more business means the more purchasing power of common .so supply and demand of commodities will increase in stagnant market due to more investment /loan based on profits by rich people . It's a kind of policy. It needs a more deep homework after evaluating market .



You can ask any questions if u don't get my points. ( Sorry for my broken English.)

 

[Mr ambassador]

Malaysia is just as well off as Greece and will catch up with Spain and Italy circa 2025.

View attachment 497725

but to even to get to Malaysia's current level will take past 2050 for Pakistan.

Like I say with Imran Khan and China, Pakistan is in a good position now but it will take many decades to even catch up with Indonesia.

Mr .. Pakistan can catch G8 countries ....


It's my faith on my idea .

 

[Lincoln]

Answers :

1 : Government can digitalize currency by introducing financial reforms mode of payments . E.g government start this process from shopping malls , feul stations and showrooms etc There are machines nowadays that one put currency to convert it into digital cash. if there be electronic machines ,people start to use credit cards.i already said first state bank issue a universal credit card for banks accounts.


2: government can manage introducing transaction machines through FBR department through its policies . Shops , resturants any business sector won't get a facility electricity ,water or gas unless they change mod of payment method into electronic . There are small cell phone size electronic machines available for shops ,fruit stalls etc. So technology is available . We just bring some changes.

3: governments / business sector can fix price . Any individual can fix it's price of his commodity . But online record or price fluctuations can be controlled by government according to demand and supply .

4: government can assure people that their money won't be deducted more than legal taxation. People can check their money on cell phones or apps. ( Everything will be online.)


4: technical issue on discount rate ....if rich people throw money for investment purposes on people . Definitely people will do more business . The more business means the more purchasing power of common .so supply and demand of commodities will increase in stagnant market due to more investment /loan based on profits by rich people . It's a kind of policy. It needs a more deep homework after evaluating market .



You can ask any questions if u don't get my points. ( Sorry for my broken English.)

Theoretically you're correct, but I am talking about practicality, how practical is it. For example, your average small scale store or a person selling on a cart most likely does not have access to the internet, most people selling on a cart wont be able to even operate such a machine or buy it let alone have access to the internet.

 

[Mr ambassador]

Theoretically you're correct, but I am talking about practicality, how practical is it. For example, your average small scale store or a person selling on a cart most likely does not have access to the internet, most people selling on a cart wont be able to even operate such a machine or buy it let alone have access to the internet.

Sir g ... Nowadays 3G facility is available in all over Pakistan.

Nowadays farmers whom I personally know use Facebook and Skype to contact their nears and dears living in gulf countries.

So definitely people will learn . It's not difficult .


If this system is applied on Pakistan ,I am damn sure there won't be any poor person in Pakistan.

there is still roam for change in my idea. All experts should look into this matter and rectify it .

 

[Cookie Monster]

I would not pay any tax to corrupts period.

Corruption is the main problem and any other problem is secondary. Why should I pay tax, that will end up in some foreign anonymous personal account or in some offshore shadow company?

By that reasoning why should any citizen pay taxes? That is unless a certificate of honesty is provided by everyone in a leadership position...so let's just shut down the police department, fire department, let's stop building roads, hospitals and schools and devolve back from a society/nation state to each man for himself

then u would have total control over what happens with ur money...and if u need a hospital for when u get sick, u can build it urself...need roads to get to places? Easy...build it with ur own money that u saved by not paying taxes

Taxes are a duty on any citizen who uses facilities(I mentioned just a few above) provided by the government. Otherwise u r practically a burden on tax paying citizens.

U think by u not paying taxes, the corrupt politicians are hurting for money? No...
when there are insufficient funds(lack of proper taxation being one major reason)...they simply take out loans...and squander that money instead...on which the country has to further pay interest.

I totally get ur frustration with corruption but it won't stop by withholding taxes. For that u(and other Pakistanis) need to make a proper use of ur vote. Once someone has been elected and was corrupt...simply don't elect them again...ever...even if they become angels later...instead give someone new a chance.

This last massive sweep of PTI over traditional jokers like PPPP/PML-N/etc. is an indication of frustration of the ppl with corruption. We don't yet know how this government will perform(and PTI has picked up many lotas which I preferred they hadn't) but if they perform well(or at least better than others before them) only then they should be re-elected again...otherwise they should be kicked to the curb like PML-N just was.