It is a private organization selected through open bid. The primary function ofPMF shall be sale of coupons through agents. As PMF is selected through bidding process therefore the second and third participants shall be engaged as auditors against a fixed fee plus 10% share in penalty (10 times of amount involved) imposed on PIVIF, if any irregularity occurs in its operations. Mean while hiring of agents generate 5 billion rupees, received prior to start of operations by PMF. This will support initial financial requirements of the PIvIF. The PMF will receive a pre determined fixed %age of all IVIBCS receipts as remuneration.
Sale of Coupons
One million unemployed and college students shall be hired by the PIVIF for the sale of coupons. Agents sell coupons @ 10% commission so no extra cost shall be borne for employing one million people. Each agent shall be assigned a monthly quota of coupons worth Rs. 300,000/-. The agent shall pay an annual registration fee of Rs. 5,000/- to PIvIF. If any agent is unable to pay Rs. 5,000, his monthly quota of shares shall be reduced to half till he pays the registration fee to PMF. Thus agents can earn commission from Rs. 10,000/- to Rs. 30,000/- per month, depending upon the circumstances.
Islamic Banking
The issuance of IVIBCS coupons make it difficult for banks to retain deposits even at higher yield rates as the profit associated with coupons shall be much higher. Resultantly the banks will loose their deposits from private sector but tremendous increase of deposits from Govt. Consequently the currency flows back from banks to government who will invest these funds on profit sharing basis through banks. It will eliminate interest from the banking sector. Banks will buy and sell coupons and provide loans on profit sharing basis instead of interest.
Foreign Exchange
In MBC System person remitting foreign exchange from abroad, using proper channel get additional 18 coupons free for each dollar remitted. This rate will vary according to the open market rate of Hawala (at least 5%) more than hawala rate. This strong incentive will eliminate hawala completely and furthermore, it will generate 5 billion USD for government every year. Government will sell surplus dollars to the registered moneychangers at a slightly higher rate (per dollar 19 coupons/shares) to cater the requirements of the general public. |
Pakistan Monetary Fund (PMF)
