Well, lets keep political differences aside fir a moment and lets discuss the primary issues which are hurting Pak Economy like anything!!! Economic Independence is the only way to get respected in International Arena!!!
So here are the list of Elements holding back Pakistan’s economy!!!
1 ) Ishaq Dar or Finance Ministers
He and Predessors made sure that the banking sector ( back bone of modern Economy) never grows!!! How!
these are the ridiculous policies haunting and killing Banking Sectors !
a) A bank account should be freezed of no transaction for six months!!! who on earth came up with this crap!!! this mean, if i live abroad, if i send me remittance and saving here and if for some reason i cannot operate my account fir 6 months!!! then i have be present myself there personally and get my account going for another six months!!!
b) You can deposit your money in the bank, but the moment yoy draw anything above 50,000 you are subject to tax deductions regardless of your tax-payer status!!! Again i dont know who cameup with this gem!!! 70% of traders/manufacturers/farmers dont believe in banking transaction and that means only salaried and tax-registered businesses/persons have to pay this!!! Result!!! i do need to havs dollar or foreign currency account , that means i may loose something in forex and continous pressure on Ruppee against Dollars…
He is beloved of your fallen leader. Ishaq Dollar or money launderer as per IK, is back against your wishes. Are there any insane people left in PML(N) who can hammer the head of your fallen leader? It does not matter to NS as he is billionaire, what Ishaq Dollar does with common people are continuously suffering the acts of these robbers and money launderers.
If you decide to do business in Pakistan and have your company registered then the most difficult part is getting through the direct and in-direct taxes!
How u get it registred!
First you need have phone number on your name! till now researchers trying to make sense out of it!!! this number, should be on your own name and also it shouldn’t be registered for any other business!!! the most funniest part is, as per state policy one individual cannot have more than five numbers!!!
if you manage above then!!! after filling out form!!! you need to go FBR Regional Center and state the whole info written in the form to the clerk there!!! and for that the average waiting period is like 4 hours!!!
and then come the serious part!!!
Now you and your business is registered! The FBR will have you pay all the taxes which may include but not limited to:
Sales Tax ( Petrol, Electricity, And what not)
Withholding Tax!
Turnover Tax
Income Tax
please remember, you are tax payer whether you are a filer or not!! not being filer your life is some what easier…
While criticizing the taxation and banking system and regulations of Pakistan, it is difficult to side-step the political element involved in it. The major reason why things like bank withdrawals and a broad range of taxes have been implemented are because these taxes hit the broader public, and affect almost everyone, even the poor and lower middle class, since everyone is buying petrol, cooking oil, electricity etc. And the reason why Ishaq Dar does this is because he cannot afford to tax the uber rich segment proportionally, because for one, he along with the Sharifs, belongs to that segment…and two, that uber rich segment is a part of their friends and family circle, who they cannot afford to alienate. They are their political lobbyists, donors, and business partners.
I dont think that is entirely true, FBR introduced these ridiculous tax schemes some 10-15 years ago when there was no Dar or Shareefs in the govt and reason was simple, FBR simply do not want to work as it hurts its personal business interest and keep that interest intact, they continue to comeup with complicated tax setup!!!
for example, a furnance in Gujaranwala may have a taax liability of Rs 50 million, the Tax inspector will enter the scence, he’ll charge 10-12 million for himself and his team, reduce the tax payable tp 10 million and there u go!!! and thanks to Dar’s idiotic vision and policies he gave FBR access to Real Estate sector since last year and a result the ehole local economy is on free fall…
ironically, apart from Shahbaz Sharif, who have serious concerns on all this and Himayoun Akhter, none including brat from PTI consider it wrong!!!
with reduced cost, Pakistani products may it be agriculture or industrial shall be able to enter international arena!!! but thanks to lots of indirect taxes on petroleum ( some say they are 40%++), electricity and other idiotic taxes mentioned above the cost of production of anything is highest in the region…for example!!! a electricity bill at a small dairy farm is 8000 or more!!! where the actual cost of electricity is 4700 and remaining are different taxes!!!
The best example is of the Wheat crop, Pakistan have additional wheat and it is getting spoiled and due to high rates locally, Pakistan is not being able to find a buyer for the surplus wheat it have..
moreover, Sugar mills have already announced the rate of sugar cane for the next crushing season!! at this rate farmers wont be be able to sell and if sugar mill owners buys it at higher rate!!! they wont be able to sell sugar in international market!!!
i believe FBR is responsible for the destroying Pakistan’s economy, FBR shows handsome figure but often shy away to show the source!!! reason any economist would out-rightly call it a joke!!!
in order to have prosper economic status!!! we need to cut costs a production and manufacturing sector!!! and major cost in manufacturing and production is indriect taxation!!