Mr 0.6 % Ishaq Dar
Ishaq Dar says don’t invest in our country and promotes black money in Pakistan. The unmatched master piece of Ishaq Dar is expected to block foreign (individual) investments, will discourage lawful financial transactions and thus resulting in bulk black money. Proposing a budget is a much serious and time consuming job that needs extreme financial expertise and integration capabilities with to integrate it with financial model. By no means is budget making a one man show but a team work only. Opposition says” budget sounds “drawing rooms” a major component of its composition and thus can never be un biased”. According to analysts “besides, financial expertise it needs a clear head and clear goals. 6% on banking transactions and 10% on remittances, both are sufficient enough to shake Pakistan economy to the grounds”.
“Pakistan economy is collapsed “said the state bank officer “and remittances from foreign settled to Pakistan are the only factor, keeping our economy moving”. The investment by lawful financial institutions was boosted by offering tax exemption certificate and was the only attraction for small scale investments. Budget 2015 canceled this certification and imposed 10% on each remittance to Pakistan. This will affect both small investments in Pakistan and remittances via legal means. Readers may not know but illegal black money exchanger offer you a market competitive exchange rate with immediate transfer. This may include home delivery if amount exceeds a specific value while on other hand; you have to wait for almost one week (minimum) for a much compromised exchange rate. Foreign settled will stop investing in an insecure country with highest inflation rate and high taxation with no returns. On other hand, the persons who send money for their family expenses will be diverted to black money routes. By applying black money channels a person will be saving PKR 16% straight forward and is a bulk of amount for a person that cannot visit his(er) home land for more than 5 years and for what reason? Insufficient payments to buy a two way ticket. Foreign luck seekers say” via budget 2015, Ishaq Dar has sent us a message to not invest in our country”.
Ishaq Dar claims his proposed budget an unmatched master piece and owns all credit alone for himself. Budget 2015 has imposed 6% withholding tax on every banking transaction including funds withdrawal, transfers and pay orders. This will create a negative impact on all banking industry and will thus result in more cash payments. Traders of Pakistan may soon announce a protest against 6% and will block markets all over Pakistan. Venders, traders, students and job seekers applying for govt. jobs are the most affected ones. Some traders are used to make or receive more than 100 transfers per day and will never appreciate 6% tax. Analysts says “every country intends to discourage cash transactions by offering more and more alternative banking services while Pakistan is moving otherwise. This will badly impact banking industry, government will need to print more currency and will increase in crime rate as well”. Some says “Printing more currency will result in de evaluation of currency, high inflation rate, more poverty and unmatched unemployment”. Banking sector will also move for right sizing and thus multiplying the current unemployment rate.
All the said can be expected from none but PML-N. “Don’t invest in our country” is a much rude message to all those struggling for Pakistan existence.