The Association of Foreign Exchange Companies (AFEC) has suggested the government to introduce a dollar amnesty scheme in order to overcome the current dollar crisis. The scheme, if implemented, would allow Pakistanis to declare their undeclared foreign currency holdings without fear of prosecution. In return, they would be charged a nominal tax. The AFEC believes that the scheme would have a number of benefits. First, it would increase the supply of dollars in the country, which would help to bring down the exchange rate. Second, it would bring undeclared wealth into the formal economy, which would boost tax revenue. Third, it would improve transparency and accountability in the financial system.
The government has not yet announced whether it will implement the scheme. However, if it does, it could be a significant step towards resolving the dollar crisis.
The scheme, if allowed, would increase supply of dollars in the country, which would help to bring down the exchange rate. Also, undeclared wealth would be brought into the formal economy, which would boost tax revenue. There is another element which this scheme brings i: improved transparency and accountability in the financial system.
This scheme, however, has some negative sides as well, such as tax evasion in the future. It could be seen as a reward for those who have broken the law. Moreover, the scheme could be difficult to enforce. Ultimately, the decision of whether or not to implement the dollar amnesty scheme is up to the government. However, it is a proposal that deserves serious consideration.
In addition to the dollar amnesty scheme, the government could also take other steps to address the dollar crisis, such as: increasing exports, reducing imports, attracting foreign investment and tackling corruption.
By taking a comprehensive approach, the government can help to overcome the dollar crisis and improve the country’s economic outlook.