Aid is only good for showing that We have large reserves ..After releasing this statement those reserves were depleting and used for servicing old debts....Aid is never obtained for financing new projects in this country..Aid can be used in a good way only if we have 0% corruption..in our country it is just a burden for next government who again apply for a new aid and life goes on and on and on....

Agreed. We take aid for meeting current expenditure, which is a sad fact

yes it can/may happen between Rose PAK,Rabia Butt and MJ khan but when we are talking about big companies it is a bit difficult because the volumes in transaction there are in millions and billions..the example given by me was immature and just targeted at explaining the phenomenon.for better understanding the actual problem of circular debt existing among our organistaions should be studied.it would not be be prudent to use my example as benchmark for understanding the concept of circular debt.

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Puppet,Slave,Lover

Pakistan Gross Domestic Product is worth 167 billion dollars or 0.27% of the world economy, according to the World Bank.

Although I couldn't find this figure in our government data but here is the source:
Pakistan Gross Domestic Product (GDP)

What Does Balance Of Payments - BOP Mean?
A record of all transactions made between one particular country and all other countries during a specified period of time. BOP compares the dollar difference of the amount of exports and imports, including all financial exports and imports. A negative balance of payments means that more money is flowing out of the country than coming in, and vice versa.

What Does Trade Deficit Mean?
An economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.


Paying taxes means paying the amount as calculated in Tax Return. Filing Tax Return means you file the tax return but you are not in the tax circle as per prescribed limits under Tax Ordinance. For instance; it is mandatory for every Company, small company and AOP to file the tax return and it is possible that they may have a loss not profit. Hence they have to file the return but will not pay the tax.

Regards

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“There is no God but You (Allah Almighty), You are far exalted and above all weaknesses, and I was indeed the wrongdoer”. AL-QURAN

ok thanx....every other year taxes are increased.we still need to improve our tax-gdp ratio through levying more taxes?....it means our govt.do well if it increases taxes?according to a report only 2% people in pak.pay taxes.who are rest 98%?and who are those 2%?

You can increase the elasticity and bouyancy of the existing taxes, and bring more tax payers in the net and you can increase tax to gdp ratio without any new taxation.

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Economist.....

what is progressive and regressive taxation?
which system is in vogue?
what do we mean by expanding tax base/net? which of the above system can help to achieve this?

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*you can tell more about a person by what he says about others than you can by what others say about him*-leo aikman!

Progressive taxation is where tax rate(say 15%) increases as income increase, well regressive is where tax rate decreases as income increases. Proportional is where tax rate remains same as income increases. This is applicable to direct taxes like income tax and property tax. If you are a student of economics as well you can use MTR and ATR concepts to comprehend it technically.

You can take reference from Public Finance by Rosen, and Musgrave over it as well.

Tax net, means the targetted tax payers. If we want to increase the tax net we want to bring more people in the list of tax payers. i.e. if agriculture is a white elephant and is not paying taxes if we impose tax on them we have widened the tax base.

If exemptions like 5 marla etc are removed, even then the tax base expands.

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Economist.....

what is NATIONAL FINANCE COMISSION(NFC) award?
what do we mean by provincial transfers by federal govt.?

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*you can tell more about a person by what he says about others than you can by what others say about him*-leo aikman!

Its a constitutional body, which decides revenue sharing between federal government and provincial govt. the taxes in the divisible pool, horizontally and vertically transferred by NFC

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Economist.....