Pakistan's Finance Minister Asad Umar at BBC HardTalk !

[jupiter2007]

it shows the mountain of issues that Pakistan is facing and also that the govt is aware is trying to work on it. This is not an easy fix, there is no magic wand, it is a long and painful road but the end result if achieved is worth it.

Like I said it before and today Asad Umar confirmed it in an interview with Mubashir Luqman that he needs at least 24 months to stabilize the economy. We are moving in the right direction.

I miss Dr Shahid Maqsood analysis.

Try me... i will understand.


What will happen in years time is zero exports but loads of aid and may be ''foreign investment'' as well.
A country which is lead from Bani Gala instead of PM house will never be good for Pakistan.

PPP and PMLN politics is slowing dieing. Riyasat will no longer allow political parties to destroy government institutions. Riyasat is auto correcting and no longer can be hostage by a political party.

 

[django]

Yes I have watched the whole show already and I agree with his each and every word on economy and the path he is taking. For a very long time, even before PTI implemented this policy I was of the opinion that ditching the import based foreign funded economy model and adopting the production based export model. So I cannot disagree with him here. I am a person of the same school of thought and got bashed many times for these views.

In my understanding real growth comes from production based growth model and that is known as sustainable growth. The model which China and west had implemented. The Taiwan based import growth model which we were previously using and India is currently using, I am against that model.

I would like Imran Khan to send Sheri Rehman home.

Thank you.


What is happen in economy is beyond your understanding you will see. The difference in a years time.

I watched sir..he did a good job overall but could have done a lot better.. His answers regarding media freedom and minority freedom left a lot to be desired. His dragging of Trump was a funny and enjoyed it. Overall I think, IK will eventually replace him with an expert.. sooner or later..

Asad Umar was calm, collected and clearly expressed the economic agenda of PTI, his performance was in complete contrast to that of Hameed Haroon who frankly looked like a fish out of the water tank.Kudos gents

 

[Imad.Khan]

not necessary...
your textile, fruit industry, meat industry and small engr products is all unskilled/semi skilled labour

Unskilled Labour

Skilled Labour

 

[django]

Regarding the very small number of tax payers, social distrust is the primary reason.

Hopefully when the public sees honest leadership at the top then and only then will they have confidence that their collected taxes will be utilized for the betterment of public services and institutions.Kudos bhai

 

[Hakikat ve Hikmet]

The only thing keeping that country from disintegrating is Allah and those Pakistanis who still believe in Him and the founding ideology.

Otherwise, anyone would look at this information and wonder why SHTF hasn't happened yet.

Regarding the very small number of tax payers, social distrust is the primary reason.

Pakistan is a "Hard Country" as observed by Professor Anatol Lieven.....​

An anecdote from the Turkish experience!!!! In the 70s or 80s a group of European journalists were visiting Turkey and looking into governance, society etc. They were baffled at the level of corruption, mis-management, mis-use etc. at the state level! They knew no European county would have survived with this much chaos even for six months!! They wondered how come Turkey is surviving?!?! Well, it's due to not for the folks roaming around, but due to those lying beneath the ground....

 

[Hell hound]

The single thing that stood out to me the most (now that I watched it) was the number of taxpayers being around 800k for Pakistan as quoted by the FM. I knew it was low, but not that low...

It is huge problem generally in India too....but right now we got about 86 times in gross number (69 million, soon to be around 76 million) the number of taxpayers of Pakistan (so about 12 times on per capita basis accounting for population sizes)....and we are nowhere near done in increasing it.....and getting that number to near dbl what it currently is (i.e mid term target around 130 million taxpayers...and thats still quite lousy imo):

https://www.moneycontrol.com/news/i...can-double-to-12-cr-arun-jaitley-3267001.html

This being so bad in Pakistan must account for a large systemic reason in its fiscal issues. You simply cannot operate a democracy (where the political pressure is always going to be tied to welfare + wealth redistribution) genuinely with this kind drop in a bucket in an ocean kind of taxbase.

The reforms the FM talks about in interview is good (i.e decrease subsidies, increase some tax rates)....but I would say the biggest singular focus (reform wise) has to be increase taxbase by 10 times at least for starters in this current term.

@ziaulislam @BHarwana @django @Hell hound @waz @Jungibaaz @Indus Pakistan @Oscar @That Guy @Chak Bamu @Desert Fox @Psychic @DESERT FIGHTER @Areesh @Arsalan @Dubious

few core reasons for such low tax net in my opinion are
1) lack of public trust in institutions that the funds will be used properly and they demand the results before even paying the taxes
2) process is to cumbersome for a common man and in their eyes the hassle is not worth it as repercussions for not paying up isn't bad in any way.
3)lack of proper computerized documentation of personal assets as you can't do much even if your whole tax department is running on state of the art networks and systems with best possible controls if the rest of your country's departments is still using paper.the problem is worsen by the reluctance that comes with the inter departmental info sharing.
4) corruption .why pay the government when you can pay only part of the sum to the munshi and get away with it .
5) lack of motivation to pay taxes. not everything needs to be punished but we aren't even properly incentivising the current tax payer ove non tax filer enough for them to make a case in our favor.
6) we are a democracy so can't take too many harsh actions. parties sitting in government can't afford to lose public.

 

[ziaulislam]

Unskilled Labour

Skilled Labour

textile these days is mostly unskilled/semiskilled would take 2 weeks crash course for the above two things you posted

key in my opinion is energy sector mess and tax reforms..both are difficult sectors but if PTI can solve these two in 3 years, it would be a game changer

energy sector issue is distribution, loses and cost..than there is huge debt of 700 billion rupees which needs to be settled soon

skilled labour is mostly when you talk about IT/electronic and RD areas

 

[Umair Nawaz]

comments in this thread show how much are we lacking the ability to critically analyse things....his bringing of CPEC security and Baloch so called anger even though Marri is sitting in UK under the hospitality of MI6 so is Altaf Hussain and so is Ishaq Dar is concerning and him being a true Christian bringing Asia Bibi exterdiction and even asking Asad Umer's personal opinion on this issue, while Muslims r being prosecuted on daily basis in west is particular concerning.

 

[Trango Towers]

I like the way the inteviewer says Pakistan should be ashmed for taking Saudi money yet britain and america does it..

Love Asad umars answer. He is a smart guy

Asad umar has a hard job but i supprot him more after this interview. He didnt shy away from anything and fought his corner with dignity.

Persoanlly i think every pakistani with a land cruiser and a big mansion should be asked to prove where his money comes from and taxes are paid . If they are clean they should be given some small financial reward but the dirty money should be taxed heavily and if there are problems then confiscated. Basic such as foods prices should be maintained at a level so that the poor are not given hardship.
Having been in pakistan for 5 years i know its not a poor country. But is a badly mismanaged country.
Example....traffic is a major problem. I have had two chalans in 5 years about 500 rupees each. For me its a cup of coffee. But if the chalan was 3000 or 5000 and 50 percent went to the traffic cop. We would see the cops wouldnt forgive their mothers. People would drive better and more money for the country. But equally any cop caught cheating the system must have heavy penalties such as fines of several lakh, prison and dismissal. Pakistan is a hard country and laws have to be hard.
Asad umar has to make the business environment better. Make it easier for investment.
The interviewer came from indian western perspective for CPEC

I am satidfied with Asad Umar. He will do a great job given the chance. We have had generations of mismanagement. It will take time

 

[jupiter2007]

Unskilled Labour

Skilled Labour

We can do that but we need to start now. it will take 5 to 10 years to convert unskilled workers to skill workers and we need maintain the economy to support skill workers.

 

[Imad.Khan]

textile these days is mostly unskilled/semiskilled would take 2 weeks crash course for the above two things you posted

key in my opinion is energy sector mess and tax reforms..both are difficult sectors but if PTI can solve these two in 3 years, it would be a game changer

energy sector issue is distribution, loses and cost..than there is huge debt of 700 billion rupees which needs to be settled soon

skilled labour is mostly when you talk about IT/electronic and RD areas

Ok in Australia, people with degrees are called high skilled, while people with sewing, carpentry, welders & metal works are called skilled which you are referring to as semi-skilled.

We can do that but we need to start now. it will take 5 to 10 years to convert unskilled workers to skill workers and we need maintain the economy to support skill workers.

I agree

 

[Clutch]

What will happen in years time is zero exports but loads of aid and may be ''foreign investment'' as well.
A country which is lead from Bani Gala instead of PM house will never be good for Pakistan.

Pakistan's export deficit is years in the making... Not a 3 month phenomenon.

 

[HAIDER]

It is fact, politicians for the last 35 years only show performance due to military. Like Nawaz tried his best to convert military into Punjab police. There are few black spots due to establishment in the past, but when i see politicians corruption cases, they are extremely scary .
But for Naya Pakistan, IK need to fire majority of bureaucracy. After 18th amendment, govt has huge surplus of bureaucrats . They are extra burden. Over 100 grade 22 employees, equal to full General with perks and privileges ......................do we need that many???

 

[Zibago]

@Moonlight @Zibago @BHarwana @war&peace @Tps43 @Indus Pakistan @Arsalan

That comment on Kashogi was just awesome i never heard a leader talk like that
Proud to have voted for him in 2013
@PakSword @BHarwana @Hell hound

 

[django]

That comment on Kashogi was just awesome i never heard a leader talk like that
Proud to have voted for him in 2013
@PakSword @BHarwana @Hell hound

Just compare his performance with Mr Haroon Hameeds, world of difference.Kudos Sheikh