SUGGESTION TO PTI AND POLICY MAKERS TO INCREASE FOREX $$$$$

[Ali Sha]

Since these are unprecedented times & we desperately need forex, why doesn't IK pass an ordinance where any expatriate who sends 10k dollars till December can import one car tax free whenever he/she wants as long as they have a NICOP. The catch being that the car wouldn't be allowed to be sold for a minimum of three years at least- the 10k has to be deposited before December 2020. Also, the money sent has to stay in a usd account for at least a year. I am sure many people will remit money and fill our empty coffers. I know this is naive but just a suggestion. What do you guys think? Can anyone suggest this to Zulfi Bukhari or IK?

 

[Ali Sha]

You guys can edit and improve the suggestion.

 

[NasNY]

How about just pay the honest tax on the car and help the govt. Then govt can use that money to buy dollars.

 

[Citizen X]

How about just pay the honest tax on the car and help the govt. Then govt can use that money to buy dollars.

Or how bout reducing the ridiculous amount of exorbitant tax on new and used cars which often exceeds the actual value of the car.

 

[Ali Sha]

How about just pay the honest tax on the car and help the govt. Then govt can use that money to buy dollars.

That hasnt been happening for the past 50 years now. We need out of the box solutions. Corona is going to break our crippled economies back bone. I thought this was one of the way our govt could raise precious dollars.

 

[Ali Sha]

Or how bout reducing the ridiculous amount of exorbitant tax on new and used cars which often exceeds the actual value of the car.

But that wouldn't help raise our usd reserves. I admit we pay through our noses for bad cars. But you are digressing from the topic. We need ingenious ideas to raise $$$

 

[Ordinary Person]

Annual car production in Pakistan is about 300,000. Let's assume 300k people avail such scheme, if offered, which means $ 3bn inflows. This will kill the demand of local cars which will:
- endanger 2m labor force employed by the industry
- reduce tax collections by $400m
- but will also reduce imports (of parts) by $500m

So based on these numbers, does it worth?

 

[wamufti]

Offer land/house only for overseas Pakistanis - down payment should be 10% of total amount. Transferred in USD - the rest in 3 years instalments. Make this offer easier to avail by offering smaller plots/houses. Most overseas might already be paying off a house in resident countries - won't be able to afford higher down payment/instalment.

 

[Ali Sha]

Offer land/house only for overseas Pakistanis - down payment should be 10% of total amount. Transferred in USD - the rest in 3 years instalments. Make this offer easier to avail by offering smaller plots/houses. Most overseas might already be paying off a house in resident countries - won't be able to afford higher down payment/instalment.

Another great idea. We can work on different fronts. Kuch lo kuch do ke policy would be best. Overseas are our assets. We should put our money where are mouth is. Just empty slogans wouldn't work. Other than that the Chinese should defer our payment.

 

[Nadir Bashir]

1. Curb down all unnecessary imports.
2. Try to manufacture products locally. We have seen great potential for Covid-19 accessories, which are now being manufactured locally.
3. Keep the value of rupee as per actual or may be down as compared to india and Bangladesh.
4. Negotiate with IPPs to lower the price of electricity.
5. Focus towards export of agricultural products since it is going to pay heavy in near future.
6. Discuss with Arab brothers to provide more opportunities to Pakistanis.
7. Support companies which can take foreign contracts in consultany, construction especially in EPCC. One way would be to subsadize overhead for the companies against a certain number of manpower.
8. so on......................

there are many ways......................Increase the vacancies of the doctors under Government requirement and under foreign export requirements etc

 

[Ali Sha]

1. Curb down all unnecessary imports.
2. Try to manufacture products locally. We have seen great potential for Covid-19 accessories, which are now being manufactured locally.
3. Keep the value of rupee as per actual or may be down as compared to india and Bangladesh.
4. Negotiate with IPPs to lower the price of electricity.
5. Focus towards export of agricultural products since it is going to pay heavy in near future.
6. Discuss with Arab brothers to provide more opportunities to Pakistanis.
7. Support companies which can take foreign contracts in consultany, construction especially in EPCC. One way would be to subsadize overhead for the companies against a certain number of manpower.
8. so on......................

there are many ways......................Increase the vacancies of the doctors under Government requirement and under foreign export requirements etc

All are good recommendations but are long term. We need dollars in the next few months so need a quick and easy fix for now!

 

[islamabadi]

I thought this PTI gov policy to trade with our largest trade partner China in Yuans instead of dollars and that was supposed to save billions of dollars.....guess that didnt go right...import substitution is one way to go.....barter trade with our neighboor iran is another way ....pay for iranian oil with rice / wheat / sugar etc and thereby stop the flow of $'....this PTI laanti governmetn has already lost the confidence of overseas Pakistani fromthe result of Pakistan banao certificates....so dont expect to raise your foreign reserves by importing cars

 

[Ali Sha]

I thought this PTI gov policy to trade with our largest trade partner China in Yuans instead of dollars and that was supposed to save billions of dollars.....guess that didnt go right...import substitution is one way to go.....barter trade with our neighboor iran is another way ....pay for iranian oil with rice / wheat / sugar etc and thereby stop the flow of $'....this PTI laanti governmetn has already lost the confidence of overseas Pakistani fromthe result of Pakistan banao certificates....so dont expect to raise your foreign reserves by importing cars

Thanks for the solid suggestions. I threw in the vehicle idea because many people will send money to be locked in escrow accounts, and later on import a tax free vehicle and sell it in the market for a profit. It is a quick fix and 10k isn't that much. Many ppl will jump at the idea.

 

[Ali Sha]

Annual car production in Pakistan is about 300,000. Let's assume 300k people avail such scheme, if offered, which means $ 3bn inflows. This will kill the demand of local cars which will:
- endanger 2m labor force employed by the industry
- reduce tax collections by $400m
- but will also reduce imports (of parts) by $500m

So based on these numbers, does it worth?

Local industry is shut because of corona virus. Even when it opens again I doubt that it would be working at full strength. Under your assumption 3billion before December isn't a bad bet. We could tweak the scheme and in order to provide immunity take an affidavit of some sorts that the cars imported can not be sold or used only for personal use before a certain number of years.

 

[MRT.abcd]

How about just pay the honest tax on the car and help the govt. Then govt can use that money to buy dollars.

car costing 500$ would cost 30,000$ after paying tax.

 

[NasNY]

car costing 500$ would cost 30,000$ after paying tax.

Buy local and help manufacturing and create jobs.
But if you love the car pay the price.

 

[NasNY]

Or how bout reducing the ridiculous amount of exorbitant tax on new and used cars which often exceeds the actual value of the car.

Local cars help manufacturing creates jobs in 100s of related industries these industries and employees pay taxes to the govt and the final product is resgistered and govt makes more money.

if you love the car pay the taxes. If it is not financially feasible don’t import the car.

Used cars are cheaper in price in Japan and Korea, Taxes are in place in Pakistan to protect the industry.

 

[NasNY]

That hasnt been happening for the past 50 years now. We need out of the box solutions. Corona is going to break our crippled economies back bone. I thought this was one of the way our govt could raise precious dollars.

If you have intention to help then just keep 10000 dollars in the bank account, why expect anything back issue of car taxes is irrelevant if you want to help.

 

[Ali Sha]

If you have intention to help then just keep 10000 dollars in the bank account, why expect anything back issue of car taxes is irrelevant if you want to help.

I would do that. But many people wouldn't and our country needs forex. So in order to lure people and money you have to give them something in return. There are no free lunches.

 

[Ali Sha]

Local cars help manufacturing creates jobs in 100s of related industries these industries and employees pay taxes to the govt and the final product is resgistered and govt makes more money.

if you love the car pay the taxes. If it is not financially feasible don’t import the car.

Used cars are cheaper in price in Japan and Korea, Taxes are in place in Pakistan to protect the industry.

We need to neutralise the damage caused by corona. The only way is to raise quick $$ within the next few months. If we have shored up reserves we can reduce interest rates and quickly mobilise billions to add into different safety nets to help the poor. The policy should be time bound so it shouldn't dent our local industry. Thats why I said money should be send before December and only one car to be allowed per NICOP