Even as almost every Opposition party in India continues to attack Prime Minister Narendra Modi for demonetising old Rs 1000 and Rs 500 currency notes, the decision has found some genuine appreciation in Pakistan.
Not just the appreciation, Malik Riaz, who is considered to be one of the richest man in Pakistan, has even urged Pakistan Prime Minister Nawaz Sharif to demonetise currency notes worth Pakistani rupees 5000, 1000 and 500.
During an interview to Geo TV on November 12, Malik pointed out that currency ban is the best way to end corruption and increase tax collection in Pakistan. “I have said it earlier also that , “this (currency ban) is a billion dollar idea. We can end corruption from the country by adopting this.”
Malik said the biggest diseases affecting Pakistan economy are corruption and no-tax collection. Appreciating PM Modi’s move, Malik said, “I had suggested solution of both the problems (to PM Sharif.) That was to ban currency note of 5000, 1000 and 500 from the country. End price bonds, announce amnesty in the country for 50-60 days. Billions of dollars would come. Even announce amnesty for overseas Pakistani citizens.”
He further said, “I have been told that India has so far collected 228 billion dollars. Even we (Pakistan) could have collected at least 10-15 billion dollars.”
Apprehensions have been raised by many experts in India, including ex-Prime Minister Manmohan Singh, that demonetisation may not end corruption or black money permanently. What Malik said on this issue is interesting.
According to Malik, even if a person converts black money into white for the time being, he would have to pay tax the next time if he has do transaction only through the banks.
Interestingly, while demonetisation is attracting Pakistanis, Indian opposition parties do not agree with the policy. Several protests have been organised across the country by them and Rajya Sabha continues to be stalled. However, the protests haven’t received much support from people in India.
Today, Indian shares rose after the central bank said lenders had received 8.45 trillion rupees ($123.05 billion) in deposits, absorbing a substantial amount of the 500 and 1,000 rupee notes that were declared worthless earlier this month. The amount deposited, announced by the Reserve Bank of India on Monday, raised hopes that the demonetisation process would end sooner than expected, reducing what has been a key constraint for markets.
The government unveiled a scheme on Monday to give tax dodgers another chance to come clean, in a bid to bring billions of dollars worth undeclared income into the mainstream economy.
(With agency inputs)