Self sufficient Pakistan

SELF SUFFICIENT
PAKISTAN
A brand new formula, method,
technology and idea which
can be a remedy to all
economic problems of
Pakistan. The idea in its
totality is not tried as yet
anywhere in the world.

PREAMBLE
Diagnosis &
Major challenges

Major Challenges

HEAVY DEBTS

Rs
71000

$ 130 Bn
Rs12.7 Tr

Major Challenges

INFLATION
DEFINITION REASONS
The rise in the prices of goods Excess of money with a part of
and services in an economy over society
a period of time. When the Rise in production cost
general price level rises, each unit Heavy Taxes
of the functional currency buys
fewer goods and services and real
value of money declines.

Major Challenges
EFFECTS OF INFLATION ON
ECONOMY
POOR ECONOMIC DEVELOPMENT
Rate of saving and investment decreases
DECREASE IN FOREIGN INVESTMENT
Decrease in value of money discourages foreign investors.
DIFFICULTIES FOR PEOPLE WITH FIX INCOME
Real income goes down due to price hike.
FAILURE OF DEVELOPMENT PLANS
Due to consistent rise in price level projects are revalued/revised
again and again and are ultimately failed due to heavy costs and
not meeting deadlines.
ADVERSE BALANCE OF PAYMENT
Export products get costly (due to increased cost of production)
and unable to compete in international market
SOCIAL INEQUALITY
Poor gets poorer and rich gets richer because wages increases
with less proportionate than profits.

Major Challenges
MEASURES TO CONTROL
INFLATION
MONETARY POLICY FISCAL POLICY
Monetary Policy involves The government’s handling of
changes in the base rate of
interest* to influence the rate of its own spending, taxation and
growth of aggregate demand, government borrowing are the
the money supply and key components of fiscal policy.
ultimately price inflation.
*Base rate is a rate issued by SBP for commercial banks to charge from borrowers.

Major Challenges

LOW TAX COLLECTION
Tax Burden

2.381 2.231
Tr Tr

TAX TAX DIAGNOSIS
RATES BASE

Major Challenges

$18.26 Tr TAX EVASION $0.2 Tr

Rs 19.65 Tr
Rs1794 Tr

In
Circulation
In Swiss Banks
Tax evasion by politicians by not filing tax returns
Tax evasion by business class through false Accounts/Returns
Under world transactions
Small businesses (Shop keepers etc)
Agriculture sector

SOLUTION
A formula, method, technology and idea to increase
the Tax Base and reduce the Tax rate

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Major Challenges

LESSON FROM HISTORY
HISTORY LESSON
In Tang Dynasty (A.D. 618- In 1455, China discontinued use of
paper money for few hundred years
907) China used paper bills for
because its use caused devaluation
the 1st time for exchange of
and inflation.
value and kept on using them
till 1455.

Major Challenges
ABOLISH PAPER MONEY AND
COINS ???
SOUNDS WEIRD
How will we get salaries?
How will we do shopping?
How Businessmen will do business deals?
What will be medium of exchange?
How borrowings will take place?
How stock exchange will work?
How foreign remittance will be made?

Solution

THE IDEA: STEP BY STEP
STEP 1
ESTABLISHMENT OF COUNTRY-WIDE INTRANET

A fire-walled and
encrypted country-wide
intranet will be established
by Min of Science and
Technology.

Solution

STEP 2
DEVELOPMENT OF SPECIALIZED BANKING SOFTWARE

A specialized banking
software will be developed
for use of all commercial
banks to link them with a
single source of data
residing in database of
SBP.

Solution

STEP 3
PROVISION OF BANKING SOFTWARE TO ALL BANKS

All commercial banks will
download the banking
software from intranet and
will enter data of their
respective account
holders in new software.

Solution

STEP 4
OPENING OF BANK ACCOUNTS OF ALL ADULTS

Once data of existing
bank accounts holders will
be updated in database of
SBP, the NADRA dabase
will be linked with SBP
database to find out NIC
holders not having any
bank account. With a
single click bank accounts
will be opened in nearby
branch of any bank as per
addresses available in
NADRA database.

Solution

STEP 5
ISSUANCE OF NADRA SMART CARDS TO ALL ADULTS

All Pakistanis will be
issued with NADRA smart
cards which includes
mobile number, bank
account number and all
other detail.

Solution

STEP 5
ISSUANCE OF NADRA SMART CARDS TO ALL ADULTS

Solution

STEP 6
WHITENING OF BLACK AND LAUNDERED MONEY

Govt will notify through
media that all sums of
money dumped or placed
in foreign banks be
deposited into bank
accounts of their owners
till a given deadline failing
which the dumped money
will stand void and
laundered money will be
retrieved in Govt treasury
by filing cases in
international courts.

Solution

STEP 7
DEVELOPMENT AND LAUNCHING OF INTRANET WEBS

Govt will notify through
media that all members of
business community
should upload their web
sites on intranet to be a
part of online business.

Solution

STEP 8
PRINTING/PROVISION OF CASH COUPONS

Machine readable cash coupons similar to mobile
cards will be printed at security printing press in
different denominations and will be provided to
commercial banks for issue to account holders at
bank counters or through ATMs.
The coupons will expire after 15 days of their issue.
Every issued coupon is to be swapped before its
expiry date to credit its value to some account.
Value of unswaped cards by due date will
automatically be credited to Treasury.
1% of the value of issued coupons will be credited
to FBR account at the time of issue and account
number info will be saved in magnetic tape of cash
coupons.

Solution

STEP 9
ALTERATION OF ATM SOFTWARE/HARDWARE

Software and hardware of
existing ATM machines
will be changed to tailor
them for browsing of
intranet and issue/deposit
of cash coupons

Solution

STEP 10
DISCONTINUATION OF PAPER MONEY AND COINS

Govt will notify through media that
paper money and coins will be
discontinued WEF certain date,
therefore, all paper currency should
be deposited in commercial banks in
respective accounts.

Solution

STEP 11
PROVISION OF SWAPPING MACHINES

Machines similar to debit
card machines will be
provided to all major
outlets which will be
capable of swapping cash
coupons and smart cards
alike. The utilized amount
will just change its location
from buyer’s account to
seller’s account in
respective banks.

Solution

STEP 12
HAND HELD FINANCIAL MACHINES

Hand held financial machines
will be provided to those account
holders who do not like to keep
cell phones. The machine will
process cash transactions
between parties/individuals.

Solution

STEP 13
E-MONEY WILL TAKE OVER

All transaction will start
taking place through cell
phones (text messages),
smart cards, hand-held
financial machines,
intranet webs or cash
coupons.
No paper money or coins
will remain in use.

Solution

STEP 14
ONLINE SHOPPING

All internet enabled
devices will be able to
shop online from intranet
based web sites of
Pakistani businessmen
including online stock
trading.
Network topology will be
designed in such a way
that either internet or the
intranet will be accessible
at a time and not the both.

Solution

STEP 15
UNAVOIDABLE FOREIGN REMITTANCES

Requests for outward
foreign remittances will be
sent by filling a form on
intranet.
After electronic verification
through respective high
commission office, the
legitimacy of the
remittance will be
confirmed. Desired
amount will be remitted by
concerned bank in foreign
bank accounts.

Solution

ECONOMIC BENEFITS OF THE SYSTEM
HEAVY TAX REVENUES
Tax base will be broaden to such a level that all 180 million
people of Pakistan will become tax payers.
On every transaction 1% of the value will directly go into
account of FBR. FBR department will be no longer required; it
will be just a bank account title.
EFFECTIVE CONTROL OVER INFLATION
Monitory and Fiscal policies will be implemented electronically
by maintaining the desired level of e-money in circulation.
Every slight increase/decrease in Govt share (1%) will cause
increase/decrease in the money in circulation.
Reserve e-money at commercial banks will be administered by
SBP.
Different classes of account holders will be allowed to
transfer/utilize fixed amount of e-money in a day. Fine tuning of
these limits will control the money in circulation and inflation.

Solution

EXACT CALCULATION OF NATIONAL INCOME
National income is a prime indicator of any economy. It is
either calculated through income or expenditure method. In the
existing system it is never calculated correctly. In the
proposed system exact National Income will be calculated and
no business activity will remain under the carpet.
SELF SUFFICIENCY
At present Rs1794 trillions ($18.26 Tr) are in circulation.
Taking monthly replenishment of funds as a yard stick it can
be foreseen that the country will earn 17.94 trillion of rupees in
a month. Pakistan is under total Debts of Rs 12.7 trillions
only. It will be a game of one month only to be self sufficient.
LOW TAX RATES
At present a salaried person having salary or Rs 60000 per
month is paying about Rs 5000 per month as Tax. This tax is
in addition of various withholding taxes. In the proposed
system, he will pay just Rs 600 per month.

Solution

HEAVY FUNDS FOR DEVELOPMENT PROJECTS
Taking into consideration the technique being used by
commercial banks for their earnings, it is learned that
accounts holders never draw their all money at a time.
In the proposed system all money (Rs1794 Tr or $18.26 Tr) in
circulation will remain with Govt. A safe portion of the amount
(Say 25% i.e. $ 4.565 Tr) can be used for development
projects.

Do $4.565 Tr really means something?
Have a look on world biggest projects

Solution


31.4 Miles channel Tunnel

$22.4 Bn

Solution

Toei Oedo subway line :
Tokyo

$23 Bn

Solution

Beijing–Shanghai High-Speed
Railway

$23 Bn

Solution

Kansai International Airport Japan
(constructed in sea)

$29 Bn

Solution

International Space Station

$150 Bn

Solution

Burj Al Khalifa Burj Al Arab

$1.5 Bn $0.65 Bn

Solution

BOOM IN BUSINESS SECTOR
Availability of working capital is an all time challenge for ongoing businesses. In the proposed
system a buyer can buy raw materials costing more than his bank balance. The seller will received
full amount and a loan will be generated against the buyer, which will be payable in easy
installments.
HIGH PURCHASING POWER
Since buyers will be able to purchase anything costing more than their bank balances, therefore
their purchasing power will increase. Every increase in demand of consumer goods increases
supply (production).
FULL EMPLOYMENT
Requirement of heavy production will require more employments. The Country will achieve level of
full employment.

Solution

POLITICAL BENEFITS OF THE SYSTEM
Govt will be able to monitor the transactions / fund position of
required personnel.
Govt will be in position to monitor the flow of funds between
different agencies and personnel, which can be a clue to find out
anti-state activities.
Details of relatives of persons with ‘grey’ security status or
involved in suspicious financial transactions can be obtained
though NADRA database. This information will help the
investigating agencies to reach the required person.
If desired, Govt can cease the account of any person/group of
persons for receipt, payment and transfer of funds. In the culture
of e-money no one can survive even for a day without having his
account opened.

Solution

BANKING BENEFITS OF THE SYSTEM
Heavy deposits (Large number of accounts in each bank).
Cost effective due to minimal counter dealing.
Economy of manpower due to no cash dealing.
Economy in cash transportation, storage and security costs.
More investment due to high rate of profit and easy processing.
Discontinuation of Cheques, Drafts, MTs, TTs, Traveller cheques
etc will provide economy of manpower.
More profits through offering e-loans and charging service
charges of different transactions.

Self sufficient Pakistan

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