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A stern warning to PM in 2013..!

Mr. PM arrest economic downslide..!

Pakistan Observer 9 Sep 2013
Syed Nayyaruddin Ahmad Email:
nayyar51@hotmail.com

THERE is a strong feeling that government is mortgaging the future of the country with the foreign donor agencies, by taking so much huge amount of loans (that too just for the repayment of the old loans), which this poor country may never be able to repay. This means that in every terms, we have gone bankrupt; and can’t even breathe, without the debt life line.
The gravity of the loan repayment situation can be gauged that during the FY 2102-13 Pakistan spent about 1 trillion PKR out of the FBR’s revenue earnings of less than 2 trillion PKR. Today, Pakistan is not under huge debt, rather, it is completely buried under the debt. The government has borrowed Rs.611 billion in just 40 days from the state bank of Pakistan, as against Rs.507 billion in full year (2012-13). In other words, the PMLN’s government has borrowed Rs.15.3 billion per day in 40 days, as against Rs.1.4 billion per day by the previous regime in 2012-13.
The 6% depreciation of Rupee vs the USD in the last 80 days, has cost Pakistan Rs.3.5 billion per day and has added additional Rs.276 billion in public debt in the last 80 days. (Figures quoted in this para and its preceding para were reported by Dr. Ashfaque H Khan, in his article, titled “A nation’s debt” published by in a national English dated 27 August, 2013).
H’able Prime Minister Mian Nawaz Sharif Sahab, you always spoke against the debt burden through out the last 5 years tenure of the PPP. However, now your government has broken the entire 365 days record of the PPP government in just first 40 days, as per the details explained above. As such, kindly take it as very serious matter (of the economic life and death of Pakistan) because, all the world knows that the USSR, the strongest nuclear power of the world, was broken, not because of any enemy action, but by its own economic melt down.
Sir, unfortunately, all financial indicators points that your era is moving the country fast towards economic melt down. You may remember, I requested you to to take the personal charge of the affairs of the country, lest the situation may not come to a pass, where even you may not become helpless, to stem the rot.
In this regard, after declaring an economic emergency, the following economy and austerity measures are suggested for adoption, to at least put up an impression to the masses, that government is seriously contemplating to improve the economic resurgence of Pakistan. And also to dispel the impression that your economic policy is not to just blindly run the country on domestic and foreign loans and to merely pass your tenure of the government, without bothering about the repercussions of the future inability of the country, to pay back these loans.
Immediate 50% reduction of all the pay and perks of the entire government servants/employees from president to the peon. This should include all government employees, employees of the government semigovernment/autonomous corporations/ banks, PIA, Railways, Steel Mills etc. However, upon improvement of the economic situation the unpaid 50% salary amount should be gradually given back to the employees.
Moreover, for all these government employees, there should be a 50% rebate in payment of all utility bills and educational fees of their children during this period of economic emergency. 50% expenditure reduction in the entire PSDP. Absolute ban on the foreign trips of the government officials. All international meetings to be attended by the respective envoy’s of Pakistan, in that country.Absolute ban on the foreign medical treatment on government expenditure, right from the top to the bottom.
Cessation of the entire subsidy on the food items available to the Senators, MNA’s and MPA’s at the Parliament’s cafeteria, where Roti is served almost free; and even in Peshawar, it is selling at Rs.15/- for the general Public. Complete ban (in real sense) on the official entertainments at all levels.
NAB may be directed to take very immediate steps (absolutely ruthlessly) to recover (from within and outside Pakistan) all the looted national money, on a fast track basis. Immediate nationalisation (without giving any time to the ultra rich people to move their precious jewellery out of Pakistan) of the Gold, diamonds, gems and precious metal in Pakistan.
Reduce taxation rate of all types of taxes, GST, levies, excise etc. to a maximum of 10%. During the currency of this economic emergency period, there should be a ban on increase in the prices and rates of POL, utilities and all essential items.

 
Basically amnesty schemes are for the rich of the rich by the rich.

These schemes are offered to legalise mega economic crimes of the ultra-rich, in the poor countries falling in the category of Banana Republic: and are never offered, in the developed nations, where the rule of law is supreme.

In fact, in the poor countries the first thing the big wigs do is to get the amnesty scheme immediately legalised from the parliament and the judiciary.

In this regard, writing off of mega bank loans of the rich and mighty defaulters is also an amnesty for the ultra-rich persons of the society.

Never ever, huge educational fees, fat medical expenses and high utility bills (which includes payment by the poor of the share of theft charges of the utility facilities by the rich and mighty) have been waived off for the poor, in Pakistan, by any government.

In typical Banana Republics the huge and sprawling residences and production units of the high and mighty, invariably indulge in thefts of utility facilities and taxes with issuance of SRO’s, the burden of which, is passed over into the bills of the poorest of the poor, even living in the ghettos: and to cover up their smart moves, a propaganda is unleashed that very few persons pay taxes in the country.

Further, the hitmen of the Banana Republic excellently use their brains to serve their masters and befool the masses, by ingenious ways of deception.

In this regard, the previous government of PMLn found two genius masters/ministers who reduced the amount of Pakistan’s government debt and poverty, respectively, with just a stroke of pen, by changing the definition of total government debt and arbitrarily amending the status of poor living below poverty line, by a Royal Decree that those earning less than one USD per day will only be considered poor in Pakistan of PMLN’s government, instead of the internationally accepted yardstick of two USD per day.

If we calculate the losses suffered by the country due to the issuance of SRO’s by the previous PMLN’s government, the nation will be surprised to know that it may open a Pandora’s box of biggest ever financial scam of the country.

Moreover, like devaluation of currency, the amnesty schemes, theft of utilities, issuance of SRO’s and loan waivers increases the number of poor persons living below the poverty base line: and similarly increases the number of persons legally living above the ultra rich category, who only pay 10% of the tax revenue compared with 17% share of the poorest 10% in Pakistan, just because indirect taxation is above 80% and direct taxation less than 20% in Pakistan.

The gist of the above analysis clearly explains that Pakistan must immediately get itself unleashed from the policies of the hitmen and develop a homegrown politico-socio-economic system specifically designed to serve the masses not the masters.

Best Regards,

Syed Nayyar Uddin Ahmad

Devaluation is a sure recipe of economic meltdown..!

Government of Pakistan (GoP) must be duly warned that rapid devaluation of the PKR is no panacea for the economic stability.

Rather, it is a sure recipe for disaster, which, as a direct side affect, is throwing back more and more Pakistani population, to below the poverty line.

Those economic managers of the country, who think that our economic slide into the abyss, can be controlled with more and more devaluation (in fact four times in the last five months, re-defining or re-phrasing the definition of the total public debt, changing the definition of poverty to people who live on 2$ per day income to 1$ per day income and by fudging the economic numbers: are behaving like a pigeon; which closes its eyes, on seeing a cat.

I have been writing in the past that it’s a misnomer and disinformation that Pakistanis don’t pay taxes.

The fact is that all the 220 million Pakistanis pay taxes.

The devil lies in the fact that above 80% indirect taxes and less than 20% direct taxation, is the major cause of our backwardness; and on two dollar per day income basis, is the main reason, of over 130 million population, living below the poverty line.

Moreover, 10% poorest pay 17% of the tax revenue to the government; and richest 10% pay only 10% of the revenue to the government.

Until and unless, these abnormalities of our economic system are corrected, it will be well neigh impossible, to take out major portion of our population (which numbers may well have now increased substantially over 130 million after the recent massive devaluations of PKR) from the below poverty line income segment of poor people, earning less than two dollars per day.

In this regard, the fastest way to reduce the poverty, is to ensure direct foreign investment into Pakistan, for which our foreign missions must be given specific targets.

Other means includes immediately replacing the entire existing economic team of the SBP and the MoF. And by bringing back the billions of dollars illegal foreign funds and properties of Pakistanis, a la the Saudi Arabian Model and recovery of illegally written off loans and bad debts, by imposing economic emergency laws, on fast track basis.

Last but not the least, immediate launching of a scheme for payment of 3% PA profit (payable bi-annually) on Foreign Currency bank deposits in Pakistan (backed by the sovereign guarantee of the GoP) with a suitable, but attractive fixed period. This is a fool proof scheme, sans any risk, which can boost up our foreign reserves, in a very short time, on extremely cheap rates, as compared to the foreign loans and international bonds, which were sold by the previous government of PMLN, at even 8.25% interest rates (Pakistan will be repaying USD 910 million for USD 500 million Euro Bonds) for which the ten PM Mian Nawaz Sharif was requested to hold an inquiry, to fix the responsibility of the culprit(s), who allowed the sale of Euro Bonds, on such a criminally high interest rates.

Syed Nayyar Uddin Ahmad
Sydney

Government of Pakistan (GoP) must be severely warned that rapid devaluation of the PKR is no panacea for the economic stability. Rather, it is a sure recipe for disaster, which, as a direct side affect, is throwing back more and more Pakistani population, to below the poverty line.

Those economic managers of the country, who think that our economic slide into the abyss, can be controlled with devaluation, re-defining the total public debt, changing the definition of poverty to people who live on 2$ per day income to 1$ per day income and by fudging the economic numbers, are behaving like a pigeon; which closes its eyes, on seeing a cat.

I have been writing in the past that it’s a misnomer and disinformation that Pakistanis don’t pay taxes.

The fact is that all the 220 million Pakistanis pay taxes.

The devil lies in the fact that above 80% indirect taxes and less than 20% direct taxation, is the major cause of our backwardness; and on two dollar per day income basis, is the main reason, of over 130 million population, living below the poverty line.

Moreover, 10% poorest pay 17% of the tax revenue to the government; and richest 10% pay only 10% of the revenue to the government.

Until and unless, these abnormalities of our economic system are corrected, it will be well neigh impossible, to take out major portion of our population (which numbers may well have now increased substantially over 130 million after the recent massive devaluation of PKR) from the below poverty line income segment of population, earning less than two dollars per day.

In this regard, the fastest way to reduce poverty, is to ensure direct foreign investment into Pakistan, for which our foreign missions must be given specific targets.

Other means includes immediate sacking of the entire existing economic team of the SBP and the MoF. And by bringing back the billions of dollars illegal foreign funds and properties of Pakistanis, a la the Saudi Arabian Model and recovery of illegally written off loans and bad debts, by imposing economic emergency laws, on fast track basis.

Last but not the least, immediate launching of a scheme for payment of 3% PA profit (payable bi-annually) on Foreign Currency bank deposits in Pakistan (backed by the sovereign guarantee of the GoP) with a suitable, but attractive fixed period. This is a fool proof scheme, sans any risk, which can boost up our foreign reserves, in very short time, on extremely cheap rates as compared to foreign loans and international bonds, which were sold by the previous government of PMLN, at even 8.25% rates, for which I had then requested to Mian Nawaz Sharif, to hold an inquiry, to fix the responsibility of the culprit(s), who allowed the sale of Euro Bonds, on such a criminally high interest rates.

Syed Nayyar Uddin Ahmad

Sydney

My rejoinder to Mr. Khurram Hussain on his article titled “The 4.9 billion-dollar blunder” published by the daily “Dawn” dated 10 May, 2018.

If the Indian numbers of receiving $70 billion remittances (after including $4.9 billion remittances from Pakistan) in the year 2015 were not a lie, then either both the World Bank and State Bank of Pakistan are lying or it is a fact that a massive amount of $4.9 billion in 2015 and $4.7 billion in 2014 = $9.6 billion in two years moved from Pakistan to India purely on account of REMITTANCES and not on trade or any other account.

SHABASH to NAB for grabbing the bull by its horns.

@WorldBank must first say that #India was lying that it got $70 billion #remittances in 2015 which included $4.9 billion from #Pakistan only then WB’s denial can b accepted‬.

‪World Bank denies reports that #Nawaz #Sharif #laundered $4.9 billion to India http://toi.in/zSl4Cb/a24gj via @timesofindia

Pakistan remitted a total of $9.6 billion in 2014 & 2015 to India:

Pakistan 4th largest source of remittances to India..!

Link:- http://wap.business-standard.com/article/current-affairs/pakistan-4th-largest-source-of-remittances-to-india-115122400035_1.html

$4.7b remitted to India from Pakistan in 2014 & $4.9 billion in 2015 total = $9.6 billion: report

https:/www.google.com.pk/amp/s/www.pakistantoday.com.pk/2015/10/08/4-7b-remitted-to-india-from-pakistan-in-2014-alone-report/amp/

Few suggestions to improve economy on fast track after the great escape of the hitman..!

According to a news item reported today, our federal government is moving fast in the direction of further burdening Pakistan, with the borrowing of fresh loans.

Link:
Amid declining reserves, Pakistan set to start borrowing journey https://tribune.com.pk/story/1564936/2-amid-declining-reserves-pakistan-set-start-borrowing-journey/‬

As we are well aware that currently Pakistan’s total internal and external debt liability stands at a whopping number of $250 billion, which is almost equal to our GDP of under $300 billion. [ Finance Minister Ishaq Dar is often accused of manipulating figures to show reduced fiscal deficit as well as the total debt that according to the central bank rose to Rs22.2 trillion in 2016-17 compared to Rs14.8 trillion of 2013. The latest figure of the total debt stands at Rs25 trillion. link…https://tribune.com.pk/story/1544770/2-ticking-economic-bomb/ ]

Every sane person in Pakistan knew well in advance that Mr. Ishaq Dar will ultimately sink the country economically; and leave it after recklessly borrowing loans, with interest rates as high as 8.25%, which till date, stands as a world record, for highest interest rate.

The solution for Pakistan’s economic malaise can not and never be found in getting loans to repay the loans and to build false foreign exchange reserves with loans.

The cardinal rule to build a sustainable economy is to live within the means; for which austerity is the secret of success.

In Pakistan, we can easily control our expenses, if the following statement is adopted as a motto/mission; and implemented as an official policy, and is also displayed in the offices of the civil and military bureaucracy, just below the portrait of Quaid-e-Azam Muhammad Ali Jinnah Sahab:

“Recall the face of the poorest and the weakest man whom you may have seen and ask yourself if the step you contemplate is going to be of any use to him.”

Moreover, the following austerity measures may be adopted on emergency basis till our budget deficit is overcome and total government debt is repaid:

1. No officially paid foreign treatment for any government official or public representative be allowed without exception.

2. No government official or public representative be allowed air travel (domestic & foreign) in business/first class, on official expense.

3. No foreign tours for government officials and public representatives on official expense, without the permission/clearance of the chairman NAB. In this regard, for the foreign visits of President, Prime Minister and CM’s, no more than two persons shall accompany them on official expense.

4. All public sector organisations/corporations/
companies and sports organisations falling under the purview of the federal and provincial governments of Pakistan, must be headed by a private sector person, who should be suitably qualified, experienced and duly recommended by the Federation of Pakistan Chambers of Commerce and Industry/PEC/PMDC and other such relevant apex bodies. Moreover, all such organisations must be bound to send their internal, external and special audit reports to the Chairman NAB on regular basis.

5. Immediate issuance of orders for 50% reduction in protocol expenses (specially the motorcade) of all VVIP and other government and public servants and representatives.

6. No subsidised food and other items be allowed to be served, in the canteens/restaurants/kitchens of the President/PM houses/offices, Senate, National and Provincial assemblies.

7. Complete bar/ban on any development allocation to the parliamentarians.

8. Total ban on announcements of funds/packages for development schemes by the President/PM, CM’s and anyone for any area, community, scheme, organisation, body or NGO. All such decisions should be mentioned in an organised manner in the annual budget.

9. No announcements by any government functionary of rewards for players/board employees of sports board/body/Federation etc from the national exchequer, as was recently done in July last, to the cricket players and employees of the PCB, after the victory in the Champions Trophy, when besides players, board employees were also given crores of Rupees from the national exchequer of the country, which is obtaining loans to repay its debt.

10. Strict moratorium on purchase of news cars/vehicles by any government department or organisation, before 10 years use of the old car.

11. Complete ban on official entertainment (Breakfast, Hi-Tea, Lunch or dinner) except one dish serving for any local guests and two dishes for foreign guests.

12. No payment (in any official legal case of government or its allied departments/organisations) to any lawyer on government expense over Rs.1 million. Beyond this amount payment approval must be obtained from the chairman NAB.

13. Only one premises should be given the status of President House, Prime Minister House, Governor House and the Chief Minister House.

Besides the above austerity measures, the following steps are also suggested to rejig the national economy on a fast track mode.

1. Request to all foreign donors for a 10 years moratorium, on all debt repayments by Pakistan, which is a frontline state of the world’s war on terror (WOT). Here, don’t forget that the world powers have totally written off loans of many countries, for much less cooperation than Pakistan, which is practically fighting their war, for more than a decade and a half.
2. 20% per annum reduction in all non-developmental government expenditures, plus total freeze in all perks paid from the national exchequer, involving foreign currency.
3. Maximum tax rate on each and every type of income in Pakistan should be fixed at 10%. This will not only bring huge revenues to the government, but will also discourage the tax evasion tendencies.
The size of our undocumented economy is almost equal to the yearly budget of Pakistan.
The best way to minimise black money is not the launching of amnesty schemes, because the black money keeps flourishing after taking advantage of such facilities. If we really want to deal with the menace of undocumented economy on a permanent basis, the ideal way is to either eliminate taxes or reduce the rates of taxes to a minimum level i.e., not more than 10%. This low level of tax rate will not only spur an economic boom, but will also automatically encourage people towards paying the taxes; rather than giving bribes to the government officials to save higher payments of taxes.
4. Impart training on war footings, of various modern skills to the country’s huge unskilled manpower, for increasing the industrial and agricultural productivity, competitiveness, value addition & exports.
5. Special support and incentives for developing world class facilities for enhancing income from tourism sector, which should encompass religious, medical, educational, hunting, entertainment and traditional tourism, specially keeping in view how rapidly Dubai has become a world tourist destination, by juxtaposing technology with innovative ideas. In technology and innovation Pakistan will have to be one step ahead of Dubai and Singapore.
6. Set a target for 20% per annum increase in foreign remittances, by offering innovative incentives to expatriate Pakistanis, which should even attract foreigners to park their money in Pakistan.
7. Outsource FBR functions (which will alone increase income by Rs.1000 billion) & IMPOSE FLAT 10% tax on ALL & EVERY TYPE OF INCOME (as already mentioned at 3. above), without any exemption (except for the security forces personnel, whose salaries may be doubled with expected receipt of un-precedented increase in revenues). This will not only reduce income tax burden on salaried class (with max. tax rate of 10%. Here don’t forget consultants are already paying 10% tax), but will also result in so much increase in revenues, to the extent that government will not require any tax fresh imposition, in the budget. Plus, the government will be able to give tax free salaries to all the armed forces, rangers, police and other security agencies personnel, who are shedding their blood, in fighting the menace of terrorism, for our and our children’s safe TOMORROW.
8. Pakistan’s Foreign policy is excellent in theory, perhaps the best in the world. However, this policy should be implemented in its true letter and spirit, with core emphasis on PEACE particularly with its neighbours; and Foreign Policy thrust and motto of all our diplomats should be that any and every action in their embassy, must result in the economic benefit of the country. Foreign missions exceeding their allocated targets of investments and remittances should be lavishly rewarded with monetary benefits.
9. Initiate steps (by imposing economic emergency) to bring each and every economic activity under document. In China even road side vendors issues receipts for sales of minor items.
10. To attract huge world wide foreign exchange deposits from expatriate Pakistanis and foreigners, allow profit rate of 3% PA to be paid on half yearly basis, on Dollar and other specified foreign currency bank accounts in Pakistan. We should not forget that recently Pakistan borrowed at 3% from the IMF and sold Eurobonds at 8.25%.

Best Regards,

Syed Nayyar Uddin Ahmad

If anyone thinks that Pakistan’s economic turnaround can be achieved with the loans and policies of the World Bank, the IMF plus its current Economy Czars, then probably, he was not aware of the fact these agencies and people have only one solution in their minds which consists of three components of Loan + Tax + Amnesty Schemes.

Now giving loans to repay the loan is no favour to any country, which is badly traumatised in every way by continuously fighting War on Terror (WOT), since the year 2001. These loan giving agencies, if they really wanted to help a war ravaged country, which was fighting the WOT as a front line state of the world, should have given special moratorium for a decade, for Pakistan, in payment of their loan instalments. But, as typical Economic Hit Agencies, further trapped a hapless nation, deeper into their debts.

To further add to the economic problems of the country the economic Czars of Pakistan kept on increasing the inflation by enhancing tax rates and imposing new taxes with every conceivable scheme in their minds These merciless Czars further devised money whitening schemes to make the rich criminals who built their fortunes by evading taxes, look innocent in the eyes of the law.

Now our economic malaise has reached such a stage that business as usual, is going to jeopardise our statehood, not in years, but in months.

The degree of the sovereignty of a country, is directly proportional to the state of the economy of that nation. Actually, in constant growth & development lies our salvation. Moreover, we Pakistanis must know, that without any doubt, the easiest and surest way of moving ahead, is to stand on our own feet. Foreign expensive loans may keep us afloat, but will never allow us to swim and reach the shores of economic stability. To fresh seek loans to repay the old loans is a sure sign of disaster for any economy. Since the World and IMF knew that their fresh loans to repay old loans will further sink Pakistan economically and these loans were given with deliberate ill intentions, Pakistan must stop repayment of these loans on the very strong plea of being ODIOUS loans.

Now, the time has come to separate the growth, development, education, eradication of poverty & security of Pakistan, from the politics, forever.

It has been a good political tactics in the past by all and sundry, particularly by those at the helm of the affairs, to divert the attention of the masses, from the real issues, by mud slinging on politicians, civil and military servants, judges etc. etc. However, now we must put a full stop to this non-sense, which has wasted the entire life of Pakistan.

Since, its a matter of impending economic collapse of the country, for which all of us are responsible and one way or the other, almost no one is exempt from the charge of hurting the cause of the country; we should decide to look forward and forgive and forget each others sins of the past, and take each and every segment and political force of the society in confidence, for a very transparent scheme of our future development. In this connection, Mr. Steve Maraboli has very appropriately said that “Make a pact with yourself today to not be defined by your past. Sometimes the greatest thing to come out of all your hard work isn’t what you get for it, but what you become for it. Shake things up today! Be You… Be Free… Share.”

Nothing can match the benefits of the collective wisdom. Let us build a new economically strong and politically stable Pakistan, by our collective wise decisions; knowing very well that no political party, group or institution is so strong, to run this country single handedly, for a sustainable period, without the help and cooperation of each other. We must also realise that our personal safety and better future lies in accommodating and cooperating with each other, with the sole aim of building a STRONG Pakistan, under the slogan “Re-born Pakistan”.

In this regard, it is suggested that, we should AIM to bring Pakistan by the year 2035, to the level at which Singapore was in the year 2010 (where country was developed first and politics allowed subsequently).

All politics & other considerations should be made subservient to this TARGET for 2035, even if we have to abolish weekly holidays for the next 20 years & reduce our daily sleeping time to 6 hours.

All the stake holders, particularly, from the deprived sections of the society in Pakistan, must immediately come forward, for deciding about the direction of the future of the nation.

Biggest factor in any victory is self-confidence. Anti-thesis of terrorism is education, coupled with economic emancipation.

As such, the nation must embark upon the following agenda, to resurrect our economy without any further loss of time.

1. Request to all foreign donors for a 5 years moratorium, on all debt repayments by Pakistan, which is a frontline state of the world’s war on terror (WOT). Here don’t forget that the world powers have totally written off loans of many countries, for much less cooperation than Pakistan, which is practically fighting their war for more than a decade.

2. 20% per annum reduction in all non-developmental government expenditures, plus total freeze in all perks paid from the national exchequer, involving foreign currency.

3. All government servants starting from the President, PM, Judges, military and civil personnel using official cars must use their vehicles for 10 years, before replacing it with new model.

4. Maximum tax rate on each and every type of income in Pakistan should be fixed at 10%. This will not only bring huge revenues to the government, but will also discourage the tax evasion tendencies.

The size of our undocumented economy is almost equal to the yearly budget of Pakistan.

The best way to minimise black money is not the launching of amnesty schemes, because the black money keeps flourishing after taking advantage of such facilities. If we really want to deal with the menace of undocumented economy on a permanent, the best way is to either eliminate taxes or reduce the rates of taxes to a minimum level i.e., not more than 10%. This low level of tax rate will also automatically encourage people towards paying taxes, rather than paying to the government officials as a bribe, to save them from bigger payments of taxes.

5. Increase in industrial and non-industrial productivity, competitiveness, value addition & exports with the introduction of latest technologies for industry, commerce, agriculture, service and trade sectors.

6. Special support and incentives for developing world facilities for enhancing income from tourism sector, which should encompass religious, medical, educational, hunting and traditional tourism, specially keeping in view how rapidly Dubai has become a world tourist destination by juxtaposing technology with innovative ideas.

7. Set a target for 20% per annum increase in foreign remittances, by offering innovative incentives to expatriate Pakistanis which should even attract foreigners to park their money in Pakistan.

8. Abolish FBR (which will alone increase income by Rs.500 billion) & IMPOSE FLAT 10% tax (already being applied on dividend payments etc) on ALL & EVERY TYPE OF INCOME (as already mentioned at 3. above), without any exemption (except for the security forces personnel, whose salaries may be doubled with expected receipt of un-precedented increase in revenue, due to this formula). This will not only reduce income tax burden on salaried class (with max. tax rate of 10%. Here don’t forget consultants are already paying 10% tax) but will also result in so much increase in revenues, to the extent that government will not require any tax imposition, in the budget. Plus, the government will be able to give tax free salaries to all the armed forces, rangers, police and other security agencies personnel, who are shedding their blood, in fighting the menace of terrorism, for our and our children’s safe TOMORROW.

9. Pakistan’s Foreign policy is excellent in theory, perhaps the best in the world. However, this policy should be implemented in its true letter and spirit with core emphasis on PEACE particularly with its neighbours; and Foreign Policy thrust and motto of all our diplomats should be that any and every action in their embassy, must result in the economic benefit of the country.

10. Initiate steps (by imposing economic emergency specifically for austerity at every level) to bring each and every economic activity under document and start paying 10% tax.

11. To attract huge world wide foreign exchange deposits from expatriate Pakistanis and foreigners, allow profit rate of 3% PA, on Dollar and other specified foreign currency bank accounts in Pakistan. We should not forget that recently Pakistan borrowed at 3% from the IMF and sold Eurobonds at 8.25%.

I am more than confident that by the dint of sheer hard work, sincerity & honesty, which is imbibed in the bones of the Pakistani work force, we can surely bring Pakistan, into the comity of 20 developed nations of the world, in the next 15-20 years.

The leaders of Pakistan holding the destiny of this great nation, with highest manpower potential and material resources in the world, must remember the following two adages.

a. NOT FAILURE BUT SETTING LOW AIM IS A CRIME.

b. IN ORDER TO ACHIEVE THE IMPOSSIBLE IT IS PRECISELY THE UNTHINKABLE WHICH MUST BE THOUGHT.

PAKISTAN PAINDABAD