Deposits into Pakistani Banks reached an all-time high that is Rs.19.8 Trillion.
Important here to discuss is how it happened?
In Pakistan, the trend to do business is mainly in cash due to several reasons.
Reason behind Deposit into Pakistani Reaches All Time High 19.8 trillions
One of these reasons is that people don’t do bank transactions because they think the Federal Board of revenue can track their bank statements and may bring them into the tax net. that’s why people don’t enter banks and don’t deposit their cash into their bank’s accounts and even while filing their tax returns they don’t even show their bank statements with high deposits. They show their banks accounts detail which is not with heavy deposits. they all do this to avoid taxes and hence they show their less value of wealth than real.
Read also
Car Financing makes all time high records.
Another reason was withholding for nonfilers on cash withdrawals and fund transfers. This withholding tax was 0.6% means per Rs100,000 withdrawal or transfer from one account to another Nonfiler had to pay Rs600.
but as per the finance bill, 2021-22 Withholding tax for Nonfiler has been abolished on banking transactions.
This caused a rise in deposits and banking transactions by the Nonfilers who were earlier reluctant to do banking transactions because of this withholding tax.
Another reason for rising banking deposits is the introduction of the Roshan digital account for overseas Pakistanis and the Naya Pakistan certificates.
Naya Pakistan Certificate posts attractive rates of returns for overseas Pakistanis and hence it successfully attracts huge deposits from overseas Pakistanis.
Roshan digital bank account and Naya Pakistan certificate both have attracted so a huge deposit of more than 1.5 Billion Dollars in Pakistani commercial banks.
Because of all the above reasons Pakistanis banks are now enjoying huge bank deposits in the history of Pakistan of Rs19.8 Trillion.
Govt is now promoting House finance, car loans, exports, the inflow of remittance and all of these factors eventually end up with increasing bank deposits.