Bank Deposits Decline by a Massive Rs. 710 Billion in July

A-Thinker

Minister (2k+ posts)
money-laundering.jpg


Banking industry’s deposits have declined by Rs. 710 billion in July, mainly due to customers panicking and withdrawing money from their accounts due to FBR’s recent tax reforms.

State Bank of Pakistan’s (SBP) report says that deposits of banking industry decreased to Rs. 13.747 trillion in July 2019 from Rs. 14.45 trillion in June 2019.

According to the bankers, a significant number of customers withdrew their savings, including local currency and foreign currency, to avoid getting on FBR’s radar. The tax authority has taken a number of strict measures over the past few months, causing people to withdraw their money from the banks.

FBR had asked the banks to share the data of customers with over Rs. 0.5 million in their accounts (savings and current accounts both). These customers will be asked for their source of income and income declaration to the tax authority.

Banks, so far, have only shared the record of savings accounts with the tax authority.

A number of customers with savings of nearly Rs. 0.5 million in one or multiple accounts have decided to move their money from bank accounts to safes or park their savings in investment instruments such as National Saving Certificates, Mutual Funds, Dollars, Gold and etc.

Accountholders with millions in deposits or less than Rs. 0.5 million also withdrew their money from their banks accounts for the same reasons.

Many customers are not happy with FBR’s new policy.

An amount of Rs. 0.5 million does not show if a person is rich or evading taxes. People saving Rs. 0.5 million to Rs. 1 million in banks do it for various purposes including health, education, marriage, dowry, Hajj, Umrah, etc. Banks have not shared the data of these customers and they are already seeing the negative impacts due to low deposit mobilization.

A segment of banking customers, maintaining accounts on the name of their employees, unemployed wives and children, also withdrew their savings from these accounts and closed off these accounts temporarily. They also wanted to avoid an inquiry from FBR.

It is pertinent to mention here that deposits of the banking sector reached an all-time high at Rs. 14.45 trillion in June mainly on the account of payment against taxes. The deposits of the banking sector increased by Rs. 998 billion, including Rs. 124 billion generated under the tax amnesty scheme.

Seasonal Business Activities Also Deplete Deposits

The decline in the banks’ deposits was also attributed to a seasonal impact ahead of Eid-ul-Azha. Investors and customers usually withdraw their savings before Eid for investment in the cattle business or the purchase of sacrificial animals.

In an effort to multiply their money, investors capitalize their banks’ savings in multiple seasonal businesses including the trade of sacrificial animals and animal feeds, transportation, etc.

Last year, bank deposits decreased by Rs. 511 billion in the same season. In 2017, nearly Rs. 300 billion were withdrawn from banks in the two months before Eid-ul-Azha.

In coming months, the deposits of banks are likely to pick up gradually as investors inject their savings along with profit margins or losses in the banking system, whereas the income-driven from additional taxes will also be deposited.


Source
 

miafridi

Prime Minister (20k+ posts)
The decline in the banks’ deposits was also attributed to a seasonal impact ahead of Eid-ul-Azha. Investors and customers usually withdraw their savings before Eid for investment in the cattle business or the purchase of sacrificial animals

Last year, bank deposits decreased by Rs. 511 billion in the same season. In 2017, nearly Rs. 300 billion were withdrawn from banks in the two months before Eid-ul-Azha.
 

Nice2MU

President (40k+ posts)
چول رپورٹ۔۔۔ ایف بی آر کیوجہ سے بہت کم اثر ہوا ہے۔۔۔
 

Nadir Bashir

Minister (2k+ posts)
FBR shall be consistant in its approach and shall move towards closing openings for illegal money..............

Nation will stand with FBR for Tax revenue.............Please make one policy and follow it for 5 years..............
 

Funkaar

New Member
If the bank customers have withdrawn deposits so that they do not get on FBR's radar, what does that say? Those who should pay tax, do not want to do so. What a nation?
 

islamabadi

Minister (2k+ posts)
FIrst the FBR imposed bans on non filers buying cars.......BACKFIRED Car assembly in recession
FBR imposed restriction on purchase of Property......BACKFIRED property market in recession
FBR imposes restriction on business community....BACKFIRED ....stock market in recession
and they want to collect 5500 billionin taxes.......

Ye kon log agae hen hakumat mein? samajh nahi arahi who are these people?
 

Samlee

Senator (1k+ posts)
FIrst the FBR imposed bans on non filers buying cars.......BACKFIRED Car assembly in recession
FBR imposed restriction on purchase of Property......BACKFIRED property market in recession
FBR imposes restriction on business community....BACKFIRED ....stock market in recession
and they want to collect 5500 billionin taxes.......

Ye kon log agae hen hakumat mein? samajh nahi arahi who are these people?


The First Two Steps Were Taken By The Previous Government PTI Infact Relaxed Them.Learn To Speak The Entire Truth
 

Billo Rani

Senator (1k+ posts)
Bank deposits are stale money. If banks are not loaning money then deposits going up or down doesn't mean anything. Focus on ease of doing business policies and have uniform banking lending policies for businesses which focus on job creation to stimulate and uplift economy. Study Franklin Delano Rosevelt and how he uplifted U.S economy after the great depression of 1920s which was called the New Deal.
 

Funkaar

New Member
FIrst the FBR imposed bans on non filers buying cars.......BACKFIRED Car assembly in recession
FBR imposed restriction on purchase of Property......BACKFIRED property market in recession
FBR imposes restriction on business community....BACKFIRED ....stock market in recession
and they want to collect 5500 billionin taxes.......

Ye kon log agae hen hakumat mein? samajh nahi arahi who are these people?
One big question for you

Why should there be non-filers?
 

alicekim

Senator (1k+ posts)
US model cannot be applied to Pakistan due to lack or SOCIAL SECURITY NUMBER which means there is NO COLLATERAL against the lending money. In USA you cannot hide or run away after taking a bank's loan, but in Pakistan you can easily have another National ID, Change of Name, Address etc.



Bank deposits are stale money. If banks are not loaning money then deposits going up or down doesn't mean anything. Focus on ease of doing business policies and have uniform banking lending policies for businesses which focus on job creation to stimulate and uplift economy. Study Franklin Delano Rosevelt and how he uplifted U.S economy after the great depression of 1920s which was called the New Deal.
 

Billo Rani

Senator (1k+ posts)
US model cannot be applied to Pakistan due to lack or SOCIAL SECURITY NUMBER which means there is NO COLLATERAL against the lending money. In USA you cannot hide or run away after taking a bank's loan, but in Pakistan you can easily have another National ID, Change of Name, Address etc.
I was referring to businesses not people. Businesses have to put up collateral to get loan from banks. I assume it's same procedure in Pakistan unless you are Noora or Zardari clans.
 

alicekim

Senator (1k+ posts)
I was referring to businesses not people. Businesses have to put up collateral to get loan from banks. I assume it's same procedure in Pakistan unless you are Noora or Zardari clans.
Noora and Zardari doesn't want to do businesses anymore. They are now used to easy money i.e. taking a bite out from IMF loans, or extorting money from other businesses (such as Bahria Town). No one wants to do business since everyone wants a cut in your pie! Best is to keep the capital in Gold or Dollars and simply enjoy the 15% to 25% growth year over year ! Why bother with all the hardwork when someone else is planning to steal your CHERRY ?
 

mhafeez

Chief Minister (5k+ posts)
US model cannot be applied to Pakistan due to lack or SOCIAL SECURITY NUMBER which means there is NO COLLATERAL against the lending money. In USA you cannot hide or run away after taking a bank's loan, but in Pakistan you can easily have another National ID, Change of Name, Address etc.

یہ سب آپ کو کس نے بتایا ہے کہ آپ پاکستان میں آسانی سے قرضہ لیکر بھاگ سکتے ہیں؟؟ پاکستان میں بھی عام آدمی کیلئے راہ فرار نہیں ہے ، بینک اس کی زندگی تنگ کردیتا ہے
 

aamirza44

Politcal Worker (100+ posts)
FIrst the FBR imposed bans on non filers buying cars.......BACKFIRED Car assembly in recession
FBR imposed restriction on purchase of Property......BACKFIRED property market in recession
FBR imposes restriction on business community....BACKFIRED ....stock market in recession
and they want to collect 5500 billionin taxes.......

Ye kon log agae hen hakumat mein? samajh nahi arahi who are these people?
Are you serious? So you think that you shouldn’t pay tax? And you are promoting this ?
That show who you are !!!! Don’t want to say anymore
 

islamabadi

Minister (2k+ posts)
Are you serious? So you think that you shouldn’t pay tax? And you are promoting this ?
That show who you are !!!! Don’t want to say anymore
Their way of going about it is wrong.....u have to use carrot at times not stick.....these morons only use stick not carrots....results are in front of us
 

islamabadi

Minister (2k+ posts)
One big question for you

Why should there be non-filers?
Many reasons.....government not making it easy to be filer so no need to be a filer.
I have an MBA from New York....i logged onto the site....cant figure out how the F it works.
When "normal" people are in charge of governments.....the government puts accountants free of charge in post offices every year 30 days before taxes are due.....anyone from the public can go to these counters and file their taxes within 5 minutes. I used to do it every year. What has this PTI govenrment of jokers done to make it easy for eveyrone to become a filer? answer: NOTTHING....just make life difficult and squeeze more money

Second reason I would not like to become a filer....dont want my money to be used to pay off INTEREST on loans jacked up by THIS PTI government. Why should my money be used to pay interest at 13,5% ? When it was 5,75% before the jokers came in power and which is acceptable....
 

Funkaar

New Member
I can understand your frustration but I believe that if the law (rules) are not just, one should strive to get the law changed rather than do unlawful acts.