#Pakistan should stop repayment of #Odious #IMF Loans ..!

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