Pakistan All problem solution is in abolishi 500, 1000, 5000 currency Notes

[Kam]

We are a tax evading country. Manufacturer, businessmen, traders and even common people do not want to pay taxes.
We need reforms in taxation system.
But first problem is over supply of currency in the economy and this is heaven for the tax evaders.
Not against the currency in the market, but high value currency such 500,1000,5000 notes are real problems.
Until these currency Notes are in the market, there will be no legalization of the economy.
People will find a way to escape taxes.

So best solution is to replace currency by 100 and 200 notes while keeping currency at the same value. Or top limit should be rupee 400.

Due to this abolishing of currency, I am sure people will not be able to keep high currency at home and even traders will use banking channels since it will not be easy to carry and manage so much currency Notes. It will give a boost to the economy as well as legalization of the economy.

We need 10000 billion rupee of revenue and it's not easy to collect until there are escape routes.

 

[Dr Adam]

Makes lot of sense.

 

[Kam]

Makes lot of sense.

Secondly no foreign currency should be allowed in the open market. It should be legally forbidden. Forex traders should only be allowed to buy currency but not sell it but to the banks only.
For persons traveling, banks branches should be opened after the check in at airports to serve 24/7.
And people need to send money abroad should use banking channels.
This will stop all hoarding of foreign currency. Also by introducing low value notes, all illegal means such as hundi will also stop. Banks should only need to add remarks section to add purpose.

 

[Kam]

Makes lot of sense.

A simple example, plots are being sold at some value but declaration is less than the half of the value or DC rate. Since there is no legal channel due to over supply of cash.

 

[Dr Adam]

Secondly no foreign currency should be allowed in the open market. It should be legally forbidden. Forex traders should only be allowed to buy currency but not sell it but to the banks only.
For persons traveling, banks branches should be opened after the check in at airports to serve 24/7.
And people need to send money abroad should use banking channels.
This will stop all hoarding of foreign currency. Also by introducing low value notes, all illegal means such as hundi will also stop. Banks should only need to add remarks section to add purpose.

Though I am (پیدل) in number crunching and economics, yet your assertions make a lot of sense to me even. ?

 

[Dr Adam]

A simple example, plots are being sold at some value but declaration is less than the half of the value or DC rate. Since there is no legal channel due to over supply of cash.

? ?

 

[Kam]

Though I am (پیدل) in number crunching and economics, yet your assertions make a lot of sense to me even. ?

I had one confusion. There is a lot of oil being smuggled from Iran into Pakistan. I am not sure which trading currency, smugglers are using. If it is barter then we should expand it national level. At least by giving free hand and as well as introducing check points for legalization, we can reduce a huge foreign reserve burden.

 

[fnaeem]

isnt that what modi did ? do we know why it failed ?

 

[Kam]

isnt that what modi did ? do we know why it failed ?

It failed because he did it in two months.
We are abolishing the notes, not bringing out the black money.
We can do it gradually in two years period. Modi purpose was different. Our purpose is to legalize the economy.
Current note is nothing but a paper with Government backing.
In the same way, banking channels are more safe, secure and with Government backing.

 

[Dr Adam]

I had one confusion. There is a lot of oil being smuggled from Iran into Pakistan. I am not sure which trading currency, smugglers are using. If it is barter then we should expand it national level. At least by giving free hand and as well as introducing check points for legalization, we can reduce a huge foreign reserve burden.

I heard it is in Pak currency, as it is way too stronger than Iranian Riyal. Both the govts look the other way as it is a win win for both of them.... you scratch my back I'll scratch yours.
Zaireens however have to put $$$s.

 

[Kam]

I heard it is in Pak currency, as it is way too stronger than Iranian Riyal. Both the govts look the other way as it is a win win for both of them.... you scratch my back I'll scratch yours.
Zaireens however have to put $$$s.

We can easily reduce our foreign reserve burden for some period until we bring foreign reserves to a stable position.
Only problem is tax evasion which be easily controlled by managing the border and travel routes.
The profit which goes to oil and gas Giants will go to general public.

 

[mughals]

? ?

yes get rid of 500 or 1000 corrupt people and hang their heads on the taj mahal.
Rest will be peace

 

[Tyrion Lannister]

A simple example, plots are being sold at some value but declaration is less than the half of the value or DC rate. Since there is no legal channel due to over supply of cash.

Property sale on cash should not be allowed

 

[Kam]

Property sale on cash should not be allowed

All sale is on cash. How you can stop when there is cash.

 

[JusticeLover]

۱۰۰۰ ۵۰۰۰ بند کر دیں تو کیا پیسے بورں میں لے کر پھریں؟

چور اس ملک کی حکومت بنے ھوے ھیں اور پیسے سارے فارن کرنسی میں آپ لوگو ں کو تکلیف دینے
والی باتیں کر رھے ھو۔
بکواس تریں ایڈیا ھے انڈیا کی کاپی۔

 

[alis]

We are a tax evading country. Manufacturer, businessmen, traders and even common people do not want to pay taxes.
We need reforms in taxation system.
But first problem is over supply of currency in the economy and this is heaven for the tax evaders.
Not against the currency in the market, but high value currency such 500,1000,5000 notes are real problems.
Until these currency Notes are in the market, there will be no legalization of the economy.
People will find a way to escape taxes.

So best solution is to replace currency by 100 and 200 notes while keeping currency at the same value. Or top limit should be rupee 400.

Due to this abolishing of currency, I am sure people will not be able to keep high currency at home and even traders will use banking channels since it will not be easy to carry and manage so much currency Notes. It will give a boost to the economy as well as legalization of the economy.

We need 10000 billion rupee of revenue and it's not easy to collect until there are escape routes.

I have been thinking about it for at least 6 years. I had a 5-page document with me for years but I don't have any access to Imran Khan so, yeah.

What we need is a completely free-to-use e-money, transaction system, (finally, we have Raast, mashallah)
Now, all we need is a Raast wallet by SBP will be your account. your account number could be simply your CNIC number and you can have multiple accounts based on your business. with business accounts with the possibility to be managed by multiple stakeholders.
Now remove 500 1000 and 5000 currency denominations and make all transactions zero cost as you will be saving a lot of money on printing notes.

This will do a lot of things but the following are a few of the benefits.

1. No corruption is possible through currency as all transactions will be recorded and you can be liable for a show cause if you are govt office holder and suddenly you got a major amount in your account.

2. No theft. as even if the robbers rob you of material goods. but the money in your account can not be stolen as all transactions will be traceable.

3. Under-invoicing will be a thing of the past. so no one can evade taxes.

4. Under-employment and invoice of salaries will be curtailed as you will have to pay your employee with a transaction so you can not evade taxes this way.
5. Open profit margins, you as a businessman can not hide your, incoming and outgoing transactions and in the end, Government will be able to audit everyone automatically.
6. It can be made to work on the simplest devices and even without a device.

If you couple this with a complete digitalization of the revenue department, you can completely stop any type of monetary corruption.
Many other creative things can be done with this. for example creating a QR voucher from some printed QR code on a piece of paper. for example, if you are sending a servant for groceries, you can create a voucher for them that will only work on specific shops and specific merchants. so if it is lost or destroyed it will be okay as it was not 'cashed'.

 

[Dr Adam]

yes get rid of 500 or 1000 corrupt people and hang their heads on the taj mahal.
Rest will be peace

Sure.
KaraO Bismillah phir!

 

[Dr Adam]

We can easily reduce our foreign reserve burden for some period until we bring foreign reserves to a stable position.
Only problem is tax evasion which be easily controlled by managing the border and travel routes.
The profit which goes to oil and gas Giants will go to general public.

The fence once completed will help in custom taxes.

 

[Citizen X]

It failed because he did it in two months.
We are abolishing the notes, not bringing out the black money.
We can do it gradually in two years period. Modi purpose was different. Our purpose is to legalize the economy.
Current note is nothing but a paper with Government backing.
In the same way, banking channels are more safe, secure and with Government backing.

We are a tax evading country. Manufacturer, businessmen, traders and even common people do not want to pay taxes.
We need reforms in taxation system.
But first problem is over supply of currency in the economy and this is heaven for the tax evaders.
Not against the currency in the market, but high value currency such 500,1000,5000 notes are real problems.
Until these currency Notes are in the market, there will be no legalization of the economy.
People will find a way to escape taxes.

So best solution is to replace currency by 100 and 200 notes while keeping currency at the same value. Or top limit should be rupee 400.

Due to this abolishing of currency, I am sure people will not be able to keep high currency at home and even traders will use banking channels since it will not be easy to carry and manage so much currency Notes. It will give a boost to the economy as well as legalization of the economy.

We need 10000 billion rupee of revenue and it's not easy to collect until there are escape routes.

I'm sure the ousted govt must have thought about it, because they were trying real hard to legalize the economy. Must have had some reason not to implement it or maybe they were going to?

 

[Citizen X]

We are a tax evading country. Manufacturer, businessmen, traders and even common people do not want to pay taxes.
We need reforms in taxation system.
But first problem is over supply of currency in the economy and this is heaven for the tax evaders.
Not against the currency in the market, but high value currency such 500,1000,5000 notes are real problems.
Until these currency Notes are in the market, there will be no legalization of the economy.
People will find a way to escape taxes.

So best solution is to replace currency by 100 and 200 notes while keeping currency at the same value. Or top limit should be rupee 400.

Due to this abolishing of currency, I am sure people will not be able to keep high currency at home and even traders will use banking channels since it will not be easy to carry and manage so much currency Notes. It will give a boost to the economy as well as legalization of the economy.

We need 10000 billion rupee of revenue and it's not easy to collect until there are escape routes.

I have been thinking about it for at least 6 years. I had a 5-page document with me for years but I don't have any access to Imran Khan so, yeah.

What we need is a completely free-to-use e-money, transaction system, (finally, we have Raast, mashallah)
Now, all we need is a Raast wallet by SBP will be your account. your account number could be simply your CNIC number and you can have multiple accounts based on your business. with business accounts with the possibility to be managed by multiple stakeholders.
Now remove 500 1000 and 5000 currency denominations and make all transactions zero cost as you will be saving a lot of money on printing notes.

This will do a lot of things but the following are a few of the benefits.

1. No corruption is possible through currency as all transactions will be recorded and you can be liable for a show cause if you are govt office holder and suddenly you got a major amount in your account.

2. No theft. as even if the robbers rob you of material goods. but the money in your account can not be stolen as all transactions will be traceable.

3. Under-invoicing will be a thing of the past. so no one can evade taxes.

4. Under-employment and invoice of salaries will be curtailed as you will have to pay your employee with a transaction so you can not evade taxes this way.
5. Open profit margins, you as a businessman can not hide your, incoming and outgoing transactions and in the end, Government will be able to audit everyone automatically.
6. It can be made to work on the simplest devices and even without a device.

If you couple this with a complete digitalization of the revenue department, you can completely stop any type of monetary corruption.
Many other creative things can be done with this. for example creating a QR voucher from some printed QR code on a piece of paper. for example, if you are sending a servant for groceries, you can create a voucher for them that will only work on specific shops and specific merchants. so if it is lost or destroyed it will be okay as it was not 'cashed'.

Although I appreciate the efforts, all of this will be nothing but pie in the sky if we don't get rid of this mix achar imported govt first. So maximum effort and need of the day is to do that first.

Ek dafa mil ker bolo

#امپورٹڈ_حکومت_نامنظور