Karachi, June 05, 2017 (PPI-OT):Veteran economists and former chairman of shariah board Shahid Hussain Siddiqui said that nationalization of banks was remained unsuccessful experiences which ultimately provide space to work foreign banks in Pakistan, account holders were cheated in the name of profit and Private sector was stopped to play its role. He said that at present we are on lowest level on issuances of advances and our claims for the success of banking sector in Pakistan is absolutely false and unrealistic.
These views he expressed at a seminar on Corporate Finance Management which was organized by Business Administration Society of the students of Mohammad Ali Jinnah University, Karachi last evening. Those who also addressed to the seminar were included CFO, Pakistan Refinery, Imran Ahmed Mirza, Former , Managing Director, NIT, Tariq Iqbal, Director General, Customs, Syed Tanvir Ahmed, Associate Dean, Business Administration and Social Sciences, MAJU, Dr. Shujaat Mubarak and faculty member Nasir Ali.
Addressing to the seminar Shahid Hassan Siddiqui said that in corporate finance sector profit rate was kept on lower side to provide benefit to big businessmen community. He said our banks collected Rs. 3000 billions deposits while Rs. 5,000 billon loans were released out of which only 31 thousands peoples were provided Rs. 4,000 billons loans. He told that out of total deposits collected from general public corporate sector was obliged by providing 68 per cent loans while 32 per cent loans were distributed among the account holders.
Shahid Hassan said that budget deficit declared by the federal and provincial governments goes into the favours of the banks because governments have no option other than to take heavy loans from them. In reply to a question he told that Islamic banks are releasing loans in consumers financing sector only while agriculture sector is being totally ignored. Imran Ahmed Mirza said that in our country manufacturing of power plants is on increasing side from the last two to three years.
He said that for the successful installation of a power plant 50 per cent planning and 50 percent execution is most necessary. Syed Tanvir Ahmed told the seminar that the current tax to GDP ratio in Pakistan is roughly eleven to twelve percent, which is lowest in SAARC countries while in India this ratio in GDP is 17.7 per cent. He said that if we compared this ratio with any of the developed countries, we are far below in numbers.
He told that the tax ratio in Australia is 25.8 %, in USA 26.9 % and in all European countries is around 37.39 %. He further informed that last year despite all government efforts the total number of income tax returns filed were 1.4 million (1 %) out of total population of 200 million. He urged that State Bank of Pakistan should take steps for using National Identity Cards as ATM Cards as well as national Tax number. He said that this system is used successfully in all western countries and even in gulf countries like Saudi Arabia and UAE. The use of cash will be limited in this case, he added.
For more information, contact:
Mohammad Ali Jinnah University (MAJU)
22-E, Block-6, PECHS, Karachi – 75400, Pakistan
Tel: +92-21-111-87-87-87, 34311325-6