Asad Umar's Exit: Causes and Effects on Pakistan Economy

[RiazHaq]

Who removed Pakistan Finance Minister Asad Umar and why? What was expected of him? Did he fail to deliver it? What are the qualifications of Dr. Hafeez Shaikh who has been picked to replace Asad Umar? Is he better suited to deliver a deal with IMF and other international financial institutions?

Pakistan's Current Account Deficit. Source: Trading Economics

What are Pakistan's biggest economic issues now? Budget deficits? Trade deficits? Current account imbalances? Lack of exports? Lack of domestic savings and investments? Low FDI? What must the new economic team do to address short term and long term problems with Pakistan's economy that are forcing the nation to seek 13th IMF bailout in last 40 years?

​ Pakistan's External Debt. Source: Wall Street Journal

ALKS host Faraz Darvesh discusses these questions with Misbah Azam and Riaz Haq (www.riazhaq.com)

http://www.riazhaq.com/2019/04/asad-umars-exit-causes-and-effects-on.html

 

[umer_javed]

Asslam-u-Alaikum,

Asad Umer is gone, history, end of story now talk about future.
We are still trying to play with same old rule, you cannot make your economy better until you train your population, from the past 30 years all our governments, till today, worked very hard to teach corruption to the common man. Now when they are ready to delivery corrupt society, these people are crying louder IMF, IMF, IMF this pain won't go by crying but we need to stop our lavish life style need to start from top, so lets strip everything from our Assemblies, cut 75% of their salaries of all government employees who over 16 grade along with facilities, our government budget will be reduced by minimum 50%, along with that we need to cut 90% salaries of our all politicians with 0% facility/benefit only a 4 bed room house and 1 Motor bike United 125 that's it. If our politicians want to travel abroad then they need to get invitation from hosting country along with air tickets and other expenses.

Lets see what will be our next budget.

Regards,

 

[Fawad Javed]

Walikum Salam,

bhai saab these cuts are just peanuts and won't make any difference but they will have more of symbolic affect.
real change will only come once reforms are done otherwise no hope
Salaries cut kernay say kuch nai ho ga instead see their business and properties and compare it with what TAX they pay Asad Umar said that they have prepared list of 4 million people who are living lavish lifestyle business class traveling and almost NO tax go after these people including parliamentarians and bring them in TAX net.

Yesterday someone shared a news here don't know real or fake as per that news Monal Restaurant's Sales is 1 million everyday and they just declared 5 million a month just do the math here 17% GST that they are taking from Public is going in their pockets instead of government.

bhansien sale kernay say kuch nai ho ga and parliamentarians ke salaries say be kuch nai ho ga real thing is go after how much they worth and what tax they pay

ye Hafeez shaikh wohi banda hai jo 2010-2013 main PPP ka FM tha aur 2011 main Khan saab Minar e Pakistan per Jalsay main issay Galien nikal rahay they KHAN saab U TURNS kay saray Record toor deay

Asslam-u-Alaikum,

Asad Umer is gone, history, end of story now talk about future.
We are still trying to play with same old rule, you cannot make your economy better until you train your population, from the past 30 years all our governments, till today, worked very hard to teach corruption to the common man. Now when they are ready to delivery corrupt society, these people are crying louder IMF, IMF, IMF this pain won't go by crying but we need to stop our lavish life style need to start from top, so lets strip everything from our Assemblies, cut 75% of their salaries of all government employees who over 16 grade along with facilities, our government budget will be reduced by minimum 50%, along with that we need to cut 90% salaries of our all politicians with 0% facility/benefit only a 4 bed room house and 1 Motor bike United 125 that's it. If our politicians want to travel abroad then they need to get invitation from hosting country along with air tickets and other expenses.

Lets see what will be our next budget.

Regards,

 

[umer_javed]

Walikum Salam,

bhai saab these cuts are just peanuts and won't make any difference but they will have more of symbolic affect.
real change will only come once reforms are done otherwise no hope
Salaries cut kernay say kuch nai ho ga instead see their business and properties and compare it with what TAX they pay Asad Umar said that they have prepared list of 4 million people who are living lavish lifestyle business class traveling and almost NO tax go after these people including parliamentarians and bring them in TAX net.

Yesterday someone shared a news here don't know real or fake as per that news Monal Restaurant's Sales is 1 million everyday and they just declared 5 million a month just do the math here 17% GST that they are taking from Public is going in their pockets instead of government.

bhansien sale kernay say kuch nai ho ga and parliamentarians ke salaries say be kuch nai ho ga real thing is go after how much they worth and what tax they pay

ye Hafeez shaikh wohi banda hai jo 2010-2013 main PPP ka FM tha aur 2011 main Khan saab Minar e Pakistan per Jalsay main issay Galien nikal rahay they KHAN saab U TURNS kay saray Record toor deay

Asslam-u-Alaikum,

Bhai I understand your point but i'm strictly against the tax system, we Muslims never had tax system in our history and this tax system was introduced/implemented only after 1920s and this was introduced to make sure that these 13 richest families, owner of Federal reserve/world bank, will keep on receiving their interest and nations like us will never come out of debt. However please understand that our government is making these rich guys more richer there are several factors involved in it. Following are some prominent ones

• Rich person always find ways to save tax by paying under the table
• Rich person will grow rich because have more money to invest and grow his business
• Rich person will bribe government institutions for introducing/implementing rules which will make very difficult for common man to establish any business.

You can see an example is in our country Malik Riaz he is going to pay only 460 Billion Rs and he will be a free man, do you really believe 460B RS is big amount for him?
In 2005 or 2006 I heard one of Malik Riaz interview where he declared that he has 4 Billion US$ of wealth at that time almost 200 Billion Rs is he growing his wealth on daily basis!
Bhai, can you please check and tell me how much tax Microsoft pays?

Remember one thing every government of the world charge its citizen for all their services, you can name one service which is free in Pakistan, don't say medical and schooling is free remember we pay tax here so its also not free.

Your ID card
Your Passport
Your Birth Certificate
Your Marriage Certificate
Your Educational transcripts/degrees
Railway transport
Postal services
Electricity
Water
GAS
Petrol
Your government documents

All are paid services along with tax included, then why shall we pay tax, PIA is government department can one fly for free???

Kindly do little research, this current loan of IMF has policies which will only look into the ways of implementing more tax in order to get their Interest properly.

Regards,

 

[Fawad Javed]

No one is saying implement more Tax or increase the tax rate

right now only poor people are suffering from indirect taxation as there is weak tax system which can not catch these big fishes.

Tax system nai chaye tu pher ZAKAT ka system introduce ker deaty hain but that is not possible at the moment.

so no rocket science here its simple TAX the richer people and give relief to poor ones

Asslam-u-Alaikum,

Bhai I understand your point but i'm strictly against the tax system, we Muslims never had tax system in our history and this tax system was introduced/implemented only after 1920s and this was introduced to make sure that these 13 richest families, owner of Federal reserve/world bank, will keep on receiving their interest and nations like us will never come out of debt. However please understand that our government is making these rich guys more richer there are several factors involved in it. Following are some prominent ones

• Rich person always find ways to save tax by paying under the table
• Rich person will grow rich because have more money to invest and grow his business
• Rich person will bribe government institutions for introducing/implementing rules which will make very difficult for common man to establish any business.

You can see an example is in our country Malik Riaz he is going to pay only 460 Billion Rs and he will be a free man, do you really believe 460B RS is big amount for him?
In 2005 or 2006 I heard one of Malik Riaz interview where he declared that he has 4 Billion US$ of wealth at that time almost 200 Billion Rs is he growing his wealth on daily basis!
Bhai, can you please check and tell me how much tax Microsoft pays?

Remember one thing every government of the world charge its citizen for all their services, you can name one service which is free in Pakistan, don't say medical and schooling is free remember we pay tax here so its also not free.

Your ID card
Your Passport
Your Birth Certificate
Your Marriage Certificate
Your Educational transcripts/degrees
Railway transport
Postal services
Electricity
Water
GAS
Petrol
Your government documents

All are paid services along with tax included, then why shall we pay tax, PIA is government department can one fly for free???

Kindly do little research, this current loan of IMF has policies which will only look into the ways of implementing more tax in order to get their Interest properly.

Regards,

 

[umer_javed]

No one is saying implement more Tax or increase the tax rate

right now only poor people are suffering from indirect taxation as there is weak tax system which can not catch these big fishes.

Tax system nai chaye tu pher ZAKAT ka system introduce ker deaty hain but that is not possible at the moment.

so no rocket science here its simple TAX the richer people and give relief to poor ones

Question is same, who will take tax from these rich guys?
they produce documents
they buy people in governments
they pay peanuts and make big money
there are n numbers of ways to evade tax
So government end up catching small and easy target.... people like you and me ? so lets enjoying paying Tax.....

Bhai agar neat hai to everything is possible

 

[Fawad Javed]

as I said in my first comment

"real change will only come once reforms are done otherwise no hope"

government needs to fix Police, FBR and Judaical system on emergency basis

Question is same, who will take tax from these rich guys?
they produce documents
they buy people in governments
they pay peanuts and make big money
there are n numbers of ways to evade tax
So government end up catching small and easy target.... people like you and me ? so lets enjoying paying Tax.....

Bhai agar neat hai to everything is possible

 

[umer_javed]

as I said in my first comment

"real change will only come once reforms are done otherwise no hope"

government needs to fix Police, FBR and Judaical system on emergency basis

Bhai,

All policies are in place no need to any new policy.

The thing which needs to change is our self, rest everything will be OK automatically.

Regards,

 

[Fawad Javed]

Policies hain but implementation nai hai

Bhai,

All policies are in place no need to any new policy.

The thing which needs to change is our self, rest everything will be OK automatically.

Regards,

 

[umer_javed]

Policies hain but implementation nai hai

Bhai, keha to hai humey khudh koo change kerna hai, policy implementation kaa mean hai follow kero law ko..... ?, Aesay to Allah nay Qur'an main fermaya kay Sood lenay wala Allah say jang kerta hai... lakin majority still take interest in Pakistan.....

 

[umer_javed]

I agree with you a 100%.

Zakat system is the best system. Imagine if Imran Khan, Nawaz Sharif, Zardari and Malik Riaz paid their zakat - 2.5% of their stored wealth to the poor. This country economic worries will be over.

Pakistan has so many filthy rich people. If all of them paid their zakat, we will have a hard time finding poor people!

Tax system is for the rich people. Just pay a little bit of tax in tax amnesty scheme and your money becomes halal.

Bhai, Yes Zakat is solution for overcoming poverty but besides that we have huge debt which can be only covered by our contribution. Lets decide to dump this Tax system and introduce the contribution system where each Pakistan will contribute to evacuate from this debt crisis, believe me, Alhumdulilah we Pakistanis has hell lot of money to pay our debt with interest.

Any how all these discussions are in the air, no one will move towards this prosperity, they are all blind folded by western system.

Only when Imam Mahdi and Hazrat Isa will come we will be saved with the mercy of Allah...... till then we need to work hard for our survival...

Regards,

 

[bhaibarood]

Lets do the chronological analysis of whole departure of Asad Umar

1: Nizaami and Najam sethi etc long break the news that Asad Umar will be dropped.
2: Imran khan let the leash of Murad saeed and Faisal vowda so they start abusing in Cabinet meetings.
3: Asad umar keep getting the assurance by leadership that he wont be fired
4: IMF meeting at Washington happened , every thing fall into place,AU got IMF to accept his conditions not IMF harsh conditions,everything is smooth for economy now!
5: Asad Umar give interview to Kamran Khan in his show that hazroon khwahishain asyeeabout his departure.
6: Next day AU is fired and he is embarrassed infront of the whole world to do press conference alone.Noone from the party even bothered to sit next to him!
7: SKT/Ik ordered Dr Farhan virk to start social media campaign against Asad Umar
after two days of abuse, SKT fake tweet about condemning Farhan virk media cell.
8: Now AU is emotionally black mailed by media and sheikh rasheed to come back!
My concluding remarks noone should argue about AU patriotism or his commitment to Pakistan. I kept saying that AU is not irresponsible like Niazi and he is better person to handle govt issues than U turn Niazi

 

[umer_javed]

Lets do the chronological analysis of whole departure of Asad Umar

1: Nizaami and Najam sethi etc long break the news that Asad Umar will be dropped.
2: Imran khan let the leash of Murad saeed and Faisal vowda so they start abusing in Cabinet meetings.
3: Asad umar keep getting the assurance by leadership that he wont be fired
4: IMF meeting at Washington happened , every thing fall into place,AU got IMF to accept his conditions not IMF harsh conditions,everything is smooth for economy now!
5: Asad Umar give interview to Kamran Khan in his show that hazroon khwahishain asyeeabout his departure.
6: Next day AU is fired and he is embarrassed infront of the whole world to do press conference alone.Noone from the party even bothered to sit next to him!
7: SKT/Ik ordered Dr Farhan virk to start social media campaign against Asad Umar
after two days of abuse, SKT fake tweet about condemning Farhan virk media cell.
8: Now AU is emotionally black mailed by media and sheikh rasheed to come back!
My concluding remarks noone should argue about AU patriotism or his commitment to Pakistan. I kept saying that AU is not irresponsible like Niazi and he is better person to handle govt issues than U turn Niazi

AU has done mistake now he is martyr.

 

[bhaibarood]

Itni akal hoti to PTI main naa hota AU

buss yahi baat main aik haftey se sooch raha hoon ?
shayad AU deserve to be screwd by powderi Niazi

 

[Sohail Shuja]

Lets do the chronological analysis of whole departure of Asad Umar

1: Nizaami and Najam sethi etc long break the news that Asad Umar will be dropped.
2: Imran khan let the leash of Murad saeed and Faisal vowda so they start abusing in Cabinet meetings.
3: Asad umar keep getting the assurance by leadership that he wont be fired
4: IMF meeting at Washington happened , every thing fall into place,AU got IMF to accept his conditions not IMF harsh conditions,everything is smooth for economy now!
5: Asad Umar give interview to Kamran Khan in his show that hazroon khwahishain asyeeabout his departure.
6: Next day AU is fired and he is embarrassed infront of the whole world to do press conference alone.Noone from the party even bothered to sit next to him!
7: SKT/Ik ordered Dr Farhan virk to start social media campaign against Asad Umar
after two days of abuse, SKT fake tweet about condemning Farhan virk media cell.
8: Now AU is emotionally black mailed by media and sheikh rasheed to come back!
My concluding remarks noone should argue about AU patriotism or his commitment to Pakistan. I kept saying that AU is not irresponsible like Niazi and he is better person to handle govt issues than U turn Niazi

Lets start the story of Asad Umar, from Mian Atif, shall we number it as point zero?
Ok, then lets see from your point 6 onwards

7: Dr Ghutarghoon appears in a TV show, telling that bla bla bla and asking PTI that has Pakistan exhausted all its options?

8: IK visits Iran, before inking the agreement with IMF. This is quite brow raising for WB, ADB and IMF, indeed.

9: Iranian ruler, quite vocal about the economic interests discussed with the Pakistani PM. He was quite specific about the "Barter Trade" of "OIL & Gasssssssss + Power in Baluchistan.

10: Pakistan's requirements of Forex in the future declines. Because for the oil and gas, you don't need that greenback. So the expected deficit of the Trade balance will go off the financial sheets as it is now being balanced on the other side through barter trade with China and Iran. Pakistan's requirement to get USD will decrease. Now this will certainly incite IMF for reconsidering their investment, in Pakistan. Will they allow to fund a country who is intending to increase the economic activity in Iran? a country in their Black List?

11 : I will write from this point onwards after Hafeez Shaikh's meeting with IMF. We have been told that AU asked about 6 Billion USD, in a three years program. Lets see how this Khalifa deals with it? Will he be able to establish himself as a True Technocrat and a Patriot as well? AU is a Patriot, only, but a great one, indeed.

 

[bhaibarood]

AU has done mistake now he is martyr.

Picture abhi baki hai doost

 

[bhaibarood]

Lets start the story of Asad Umar, from Mian Atif, shall we number it as point zero?
Ok, then lets see from your point 6 onwards

7: Dr Ghutarghoon appears in a TV show, telling that bla bla bla and asking PTI that has Pakistan exhausted all its options?

8: IK visits Iran, before inking the agreement with IMF. This is quite brow raising for WB, ADB and IMF, indeed.

9: Iranian ruler, quite vocal about the economic interests discussed with the Pakistani PM. He was quite specific about the "Barter Trade" of "OIL & Gasssssssss + Power in Baluchistan.

10: Pakistan's requirements of Forex in the future declines. Because for the oil and gas, you don't need that greenback. So the expected deficit of the Trade balance will go off the financial sheets as it is now being balanced on the other side through barter trade with China and Iran. Pakistan's requirement to get USD will decrease. Now this will certainly incite IMF for reconsidering their investment, in Pakistan. Will they allow to fund a country who is intending to increase the economic activity in Iran? a country in their Black List?

11 : I will write from this point onwards after Hafeez Shaikh's meeting with IMF. We have been told that AU asked about 6 Billion USD, in a three years program. Lets see how this Khalifa deals with it? Will he be able to establish himself as a True Technocrat and a Patriot as well? AU is a Patriot, only, but a great one, indeed.

shuja bhai main tu AU specific chronological order banaya thaa...
ap ne tu mera million dollar idea hijack karlia ?
good job lets make the whole order till the end of Powderi Niazi
aik chutiaya sa dr jo economic team main tha ,usney bhi bhonka tha
akey tv pey koi ganjay uncle they

 

[Sohail Shuja]

Picture abhi baki hai doost

IK would be a fool to loose him. He is the only flag bearer and brand ambassador of PTI. The Only Nazryaati left in PTI.

 

[bhaibarood]

IK would be a fool to loose him. He is the only flag bearer and brand ambassador of PTI. The Only Nazryaati left in PTI.

but aik sawal tu uthata hai !
keh AU jaissa samjhdaar / honest admi .
Powderi Niazi jasey chwal ko ab bhi apna leader manta hai?
AU ne 9 saal is powderi ke peechey kis tarah zaya kardiey?
May be he deserve this tashreef pe laat

 

[Sohail Shuja]

shuja bhai main tu AU specific chronological order banaya thaa...
ap ne tu mera million dollar idea hijack karlia ?
good job lets make the whole order till the end of Powderi Niazi
aik chutiaya sa dr jo economic team main tha ,usney bhi bhonka tha
akey tv pey koi ganjay uncle they

Million nahi, billion dollars... bhai, IMF ki baat ker rahay hain....
Khair, abhi to party shuru hui hay,lets keep this list for later ;)
Iss week main pata chal jayega k kia honay wala hay IMF k saath.
Definitely Pakistan is being cornered by being put into Grey list by US.
Pakistan is now serious, rather desperate to maintain its balance.
AU was able to control Trade deficit/Current account deficit at the expense of growing budget deficit and increasing cost of doing business in Pakistan.