Will Rupee Devalue Further? Economic roller coaster

[HellsGuardian]

really mobilink? Telecom sector doesn't seem to be hit much! in fact work from home should have led them to more $$

[capsat]

massive paycuts

pay cuts are already in motion effective May 01 2020. Several hundred people across the country received 10-15% less from their pay cheques for May in the month of June.

approx 55000 jobs are slashed across the country from Textile & Auto Mechanical Industrial units. Am not sure of telecom & FMCG sectors.

[capsat]

not to miss 9350 people will be redundant by June 30 2020. means approx 5700 individuals will be in search of Jobs in Karachi alone.

The Pakistan Steel Mills once an ACE unit of Pakistan has been consumed inside out by the political appointees of Pakistan Peoples' Party since 18th amendment. It was back bone RAW material supplier of National Defence Production Division.

[imran747]

Indeed a very sad situation. Capsat, by MASSIVE cuts, I am pointing to 50% or even higher! Rest you're right, situation is bad for all employed/business owners alike. My cousin's software house (US clients) has slashed workforce from 400 to 150.....those will be lucky who survive this with a job.

[anon36782927]

This post was flagged by the community and is temporarily hidden.

[abdulmoueedharoon]

Very Gloomy situation, as always for Pak.

Is there any way, an individual can take some steps to prevent being hit or at least reduce the impact. Which sector will be least affected ?

[capsat]

an individual can take some steps to prevent being hit or at least reduce the impact.

cut off on your expenses. review the extras. Make use of home kitchen and local grocery stores. Online / takeaway junk food .. a 575 Chicken cheese burger fries & coke is use less. in 475 worth of fresh slaughtered chicken adults can have 1 time complete meal. add coke & naan for other 100 total 575.

Make use of PTCL cell + mobile package. cut-down on cell phone calls. So much can be saved only if we are serious to save for rainy days.

let me put my example : i disconnected an 8MB dedicated IP line from work place. a PTCL line for Rs. 999 all taxes allow me 500 cell minutes and unlimited land line calls.

A portable wifi device costs me Rs. 1500 a month for 150 GB thats more then enough.

i may have a cessna parked at some shed but it is my money and i need to save it by all means.

[abdulmoueedharoon]

I dont think these routine steps would be able to save the day when the going gets tough.

Some well thought out out of box economist loke ideas like keeping all unnecassary cash in gold or investing in something that will be lesst affected.

For example:
I have invested some amount in a relative's Cattle farm. The Cattle increase, prices to sell keep on increasing too.

Doing some freelance coding also.

I

[Xulfiqar]

Everything including cattle will get out of reach and devalue, best is to curb expense and have multiple skillsets to earn. (Bad news for “mera pyara shahzada” reared people)

The temporary rise in cattle price is speculation of eid , but when a lot of people wont have money to buy for eid, your steers and heifers will go cheap, its market rule.

[wasim625]

Finally someone is talking senses...rather than buying cattles and hens and what not BS

[capsat]

BUDGET 20-21 BULLET POINTS

1- No new tax to give relief to people
2- Ahsas program to continue by increased budget
3- To improve tax collection
4- To decrease in govt. expenditure
5- To improve subsidy system
6- Poverty elevation program
7- Higher education budget increased
8- Measures taken to improve remittances
9- Kamyab Naujawan program budget introduced
10- To improve public services through E-governance
11- Artist welfare fund increase
12- Inflation to be decrease
13- FBI increase by 25%
14- To improve health services by ICT
15- To open smart schools
TAXES :
16- POS of retailer business to increase
17- 14% to 12% sales tax on retailers
18- Hotel minimum tax decrease to 0.5% July to September
19- Fixed tax scheme introduced for Small and medium businesses
20- Export rebate, to direct transfer in business bank accounts
21- Raw Material fully exempt from custom duty to respective nature of businesses having 20000 items
22- Custom duty of 200 items in tariff line decrease
23- PRD to decrease
24- Poor people benefits --- corona—supplements etc to be exempted from duties and taxes
25- Custom official powers has been decreased
26- Inclusive of advance ruling methods in custom law
27- Unregistered sales tax person—CNIC condition from 50 thousand to one lakh
28- Covid 19 sales items exemption period increased
29- 237 sro for relief extended for further 3 months
30- 11th schedule of sales tax to improve
31- Increase in FED in all type of cigarettes and its articles increased to 100%
32- Caffine items FED from 13 to 25%
33- Double pick up FED to be taxed as other vehicles
34- 17% sales tax on potassium cholaride decrease

35- 14% sales tax decrease to 12% of big retailers
36- Wastage to fixed in manufacturing business
37- 12 schedule sales tax of VAT—manufacturers no sales tax
38- Cement sector decrease from 2 to 1.75 per kilo
39- If Appeal than reference can be made to following years
40- ADRC law to be change
41- STAY provision to be made in ADRC
42- FED law to be enhanced
43- Sales tax act 9th schedule mobile phone manufacture decrease in sales tax
44- E Audit / video link introduced for audit
45- Online sharing of assess data introduced
46- WHT Regime to delete 9 sectors (Education and marriage hall etc)
47- Commercial importer and manufacturer importing on raw material and machinery from 5.5 top 2% and 1%
48- Machinery examination certificate abolished
49- Aop and individual allowed expenditure to be claimed against property Income
50- Foreign remittances transfer from one bank to another – no tax on that
51- Tax Refund procedure – now changed – one centralized system introduced
52- 152 WHT of non resident for Hajj Companies
53- Advance tax abolished under section 231b and 234 on rickshaw and cars
54- Advance tax payment threshold increased
55- Exemption certificate through automation system
56- Schedule 12 Exemption certificate for advance tax to be produced by person who had already paid advance tax
57- RIET residential properties CGT period extended
58- Free Zone benefits also to be given modern developers
59- To simple law and business only for PE tax deduction to be made
60- Tax deduction under section 235 now fully adjustable
61- Inclusion in Active tax payer list, proper enquiry to be conducted
62- Automatic return process system to be introduce for any error in return if any
63- For and increase in data base and WHT 236V to be introduce
64- Non resident and resident tax should be same
65- Purchase and leased vehicle threshold to be same
66- Depreciation to be as per best international practice
67- NPO status per 2nd schedule section 100C condition to be strictly followed and only those NPO be there who benefits the community in general
68- 10% tax to be paid while filing appeal
69- Auto system advance tax to introduce through IRIS by 5th of every advance tax due date
70- CGT on Immoveable property decrease from 5 years to 4 years
71- Non Resident- royalty, fees etc to be decrease

72- FTR to be filed with section 114
73- Appeal fees increased
74- Section 165 WHT for bio annual now to be filed by 3 months instead of 6 months
75- Immoveable taxation CGT from 8 to 4 years and every year decrease by 25%

Further refer to salient features and brief of budget.

[Nabs]

70- CGT on Immoveable property decrease from 5 years to 4 years

75- Immoveable taxation CGT from 8 to 4 years and every year decrease by 25%

Aren't these conflicting statements? Reduced from 8 years or 5 years? As I remember it was 8 years before.

[capsat]

Sir Ji
Sitting Govt is King .. anda day ya bacha

the only thing public can do is SUFFER

[muhammadadeel96]

@capsat Sir rupee is at 166.4(buying) and 167.75 selling today. This shows an increase of 3 rs in last 2 days. 22 carat gold has reached 99k. Sir what's the future projection? One should hold cash , gold , foreign currency in different proportions? With things going like this an anarchy is just round the corner

[capsat]

cut down over expenses.

Revisit the reality and actual expenses. start using home kitchen train yourself to know prevailing prices of grocery items and buy dry stuff in bulk.

Times ahead are tough. Hold cash hold metals.
China & Germany are working upon new global currency.
This is election year in US and Trump coming back to power means US break up just like USSR. ( as predicted by Putin when Obama started campaign as 1st Black President, though it proved otherwise for global war mania )

Dollar will be at lowest.

Gold is best BET at the moment 10 gram coins or biscuits.

• just for sake of googling and lock down reading activity search following:

China have opened up imagery & navigation transponder down link for Select Middle East Friends ( Pakistan Iran included ) This means Pakistan will be in direct access to satellite imagery and Navigational accuracy.

A US F-35 & a Stealth drone was picked up through those satellites in PK air space in recent past which was plainly invisible to conventional Eyes in the Sky.

[muhammadadeel96]

New global currency . Well that's a bummer to USA.
Imagery and navigation transponders is an interesting read. But USA with the recent racial discrimination wave needs complete overhaul and changes in the system. How can trump be again re elected is difficult to fathom with the things going on there.

[krafiq]

US F-35 & a Stealth drone was picked up through those satellites in PK air space in recent past which was plainly invisible to conventional Eyes in the Sky

Share the link please

[capsat]

search "JY-27 " satellite link imagery

[capsat]

here is the finance bill 2020-2021 for those interested in the economy

[ziaullah08]

IMO 2020 and first half of 2021 can be worst in terms of economy all over the world and more or less , every one has been affected from Covid-19, But our focus should on "avoid-depression" and keep your self as supportive as you can for your family, fellows and every one in your contact. This is not the period when one should think about more savings but utilizing your existing savings on your loved ones. There is no replacment of life and health. (sorry for my poor language), Yes its a little better to reduce some "fazool-kharchi" but do not cause it stress for your family and loved ones,

There is no hard and fast rule that either GOLD will increase always or USD will increase.
USD value always depends on balance of payments. so keep look on schedules that for the period when govt have to repay some big loan installment, USD will increase and when govt will get some liquidity from IMF/ADB etc,, USD will become stable. other currencies like euro/pound are more risky and these values fluctuate more often than USD. so chance of more risk, more gain, more loss depending on holding power.

I see no truth in rumors of alternative global currency against USD , no matter trump stays or not after 2020.
Also if you are newbie, please stay away from digital currency like bitcoin