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For
Further Information Please Contact
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PROPOSALS
For
Revenue Genneration Through
Intellectual Property Right Related Business
By
ROYAL IPR SECURITY SERVICES (PVT) LTD
(RIPRSS)
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- ROYAL IPR SECURITY SERVICES
(PVT) LTD has been incorporated and registered with the
Registrar Joint Stock Companies under Companies Act XLVII
of 1948. Team of professionals having vast experience
in their respective fields manages the Company. A service-oriented
company deals specifically in investigative activities,
safety, security, protection of IPR and safeguarding of
Copyrights. Having two main divisions; Operational
& Legal, the company handles all IPR cases
from collecting evidence of offences through investigations,
enforcement of law of land to registration of criminal
cases and pursuing the cases in courts, all over the
country. Retired senior government officer having vast
experience in security, intelligence and law enforcement
heads the management. The Operational Division
consists of trained and motivated investigators
having ample experience in carrying out corporate investigations,
locating pirates, detecting the counterfeits, organizing
the anti piracy raids. Similarly, a well-trained and thorough
professional penal of lawyers, is handling all IPR related
criminal or civil cases, in Legal Division. The
main office is located at, 43/4/P (B), PECHS-6,
Karachi, Pakistan, having appropriate infra structure
in shape of large office space, vehicles, telephones/Fax
and E-mail. The regional offices are located at Lahore,
Rawalpindi, Islamabad and Quetta.
- Royal has the honoured
and distinction to provide, for the first time
in Pakistan, an easily accessible relief to Intellectual
Property owners through "single window operations"
on a well orgnised way. At present, "Royal"
has to its credit investigative activities carried out
or anti piracy raids conducted and criminal cases registered
against criminals in all major towns of Pakistan like
Karachi, Lahore, Quetta, Peshawar,
Multan, Islamabad/Rawalpindi, Faisalabad,
Jehlum, Chakwal, D I Khan, Sukker
and Hyderabad. These activities, through law enforcers,
are being directed towards the criminals indulging in
various crimes including audio, video, software, pharmaceuticals,
consumers' goods, satellite channels and book piracy/counterfeit.
Some of our past and present clients include, Harcourt
Publishers, Mc Graw Hill, LWW Publishers,
Pearson Education, Oxford University Press,
Paramount Books, Nelson Publications, Red
Spot Publications, John Willey UK, Stanford
UK, Microsoft, Auto Desk, Proctor &
Gamble, STAR TV, HBO, PEHLA PLUS
Satellite Channels, Sound Master, DJ Music,
Sonic, HeRA, CA Sports, Hitachi,
Sanyo, Sony and host of local firms/IPR owners.
There is 100% conviction rate of all criminal cases
registered through "Royal"!!!
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SOME
FACTS ABOUT HOME ENTERTAINMENT INDUSTRY VHS FORMAT
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| 3. The major source of revenue losses in the
country is the piracy in VHS format (videotapes). The nation
gets Rs 100.00 in one legally released video print as various
taxes like, Sales, Duties and Censorship fee, while the
pirates pay nothing! There are approximately 40000
video film outlets in the country, (with one of the biggest
video pirate market at Rainbow Center Karachi, followed
by Rafi/Zaitoon Plaza, Lahore and Imperial Market Rawalpindi,
having trillions of rupees as annual "Tax free"
turn over). So, modestly speaking, even if each shop purchases
one legal print, (minimum 30 video titles are being
released per month at present) the nation can get revenues
to the tune of Rs 120000000.00 per month (triple of this amount,
so far going to the pirates)! This example is based on
minimum sale, while maximum sale can yield billions and even
trillions. However unfortunately triple of this amount
so far, is going to the pirates and smugglers! |
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LASER
DISCS (LDs) / VIDEO COMPACT DISCS (VCDs / DIGITAL VIDEO
DISCS (DVD) FORMATS
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| 4. Another source of revenue losses is the
infringement in shape of rampant smuggling in of LDs, VCDs
and DVDs. There are many outlets in the country, with
major concentration at Karachi, Lahore and Islamabad/Rawalpindi,
dealing in LDs, VCDs and DVDs. These shops are not only selling/renting
out uncensored and smuggled films to the public,
but also providing an easy access for a high quality back
to back piracy for pirates. As per careful survey, about
15000 shops are dealing in LDs/VCDs/DVDs, in the country.
Each shop at any given time has about 500 units of
these discs. The governments' share in shape of taxes is,
about Rs 97,00 per legal unit. Going by the above mentioned
calculations, if every shops buys one legal Disc than the
government would get (minimum) Rs 52.38 millions per year.
Triple of it is being lost to pirates so far. Additionally,
of late, many VCD manufacturing/replicating/duplicating plants
have started operating locally. Almost all these plants are
operating illegally, violating Copyright, Motion Pictures,
Custom and Excise laws, hence major revenue losses. Out of
eight such major plants, only two are on record with the Registrar
of Companies, while others have no record, yet doing roaring
business. |
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Cable
Networks
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5. Yet another source
of revenue losses is, the Cable Networks. Although
the Pakistan Telecommunication Authority (PTA) has made mandatory
to get license for running cable networks but in the absence
of any effective policing or law, these networks have arisen
with mushrooming effects all over the country. Unfortunately
the PTA has no means to exercise any control over any of the
cable network. Their job seems to have ended after collecting
the license fee and issuance of license. PTA can not even
know if some one keeps running the cable network after cancellation
or expiry of license. In various cities of Pakistan the kind
of money made by a small to medium sized Cable operator
is phenomenal. Some facts about these illegal operators are:
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a. Average numbers of connections
8000
b. Average non refundable connection charges Rs 2,500.00
c. Total non refundable charges (2500x8000) Rs 20,000,000.00
d. Average monthly subscriptions Rs 250.00
e. Total monthly subscriptions (250x8000) Rs 200,000.00 PM
(Since the whole business being
illegal, neither the IPR owners nor the nation
get any thing out of these billions. Every Cable
operator is not only causing revenue losses,
but also destroying the moral fibres of our society
by flooding each household with vulgar obscene and uncensored
films/programmes. The licensing authority; PTA has no means
to police them.)
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STEPS
TAKEN SO FAR BY RIPRSS
6. RIPRSS, on its part, is trying its best
to not only protect the interest of the member companies
but also, in the process, generate more revenues in
shape of taxes. Its set up in Pakistan is dependent
on local police force for enforcement, which, on written
complaint, conduct anti piracy raids on outlets and
register criminal cases under Copyright law.
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Criminal cases registered
so far =4763
Expenses on these cases
=Rs 142890000.00
Results (convictions/decided)
=4600
a. Fine(Average sum)
=Rs 2300000.00
b. Imprisonment =Nil
c. Piracy / Tax evasion/Smuggling=Continues
unabated
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| process, generate more revenues in shape of
taxes. Its set up in Pakistan is dependent on local police
force for enforcement, which, on written complaint, conduct
anti piracy raids on outlets and register criminal cases under
Copyright law. There are over 4763 criminal cases
registered in major urban areas. However, the desired
effects have not been achieved despite utilisation of vast
resources. The primary reasons had been lack of interest
by the local police and inherent lacuna in Copyright
laws. Despite open law violation, the local police relegate
this crime to the last rung of priority ladder. To them, crimes
like minor traffic violation pick pocketing or petty stealing
is more important than broad day robbery of one's life long
savings in shape of intellectual property. To overcome this
problem, on our request, in 1996, Ministry of Interior issued
directives to all provinces for constituting special police
teams. Those arrangements brought in tremendous results. However,
these teams worked only for a couple of month. On the other
hand, when the Copyright case comes for decision in the magistrates'
courts, an extremely lenient view is taken while announcing
the judgement. The accused is let off for as cheap as Rs
50 fine. This is being done because the law does not guaranty
minimum mandatory penalty and has left it to the presiding
magistrates' discretion. Unfortunately this discretion is
always used in favour of the convicted person. Ministries
of Education and Culture have been approached with suggested
minor amendments in the law to make it more meaningful. The
final draft of proposed amendments is ready for necessary
legislation. |
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PAK
FILMS PRODUCERS, PLAYRIGHTS & ARTISTS
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| 7. The work being done by the RIPRSS
for English language films is giving a tremendous boost to
Pak film industry and works. The protection of local IPR will
help promoting our traditions and culture. The local film
industry, artists, musicians and creators are already producing
world class works. With the proper laws in place more Pak
talent would be encouraged. Better creativity shall take place
when our talented artists, writers and film producers know
that their life long investments would not be looted. In addition,
the nation would not only get the better quality of products
but also more revenues in shape of taxes. |
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POSSIBLE
REVENUE SOURCES
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8. The Government of Pakistan,
to begin with, can get/raise extra revenues amounting to approximately
Rs 9.5 Billions, without
incurring any extra cost. The areas from where these revenues
can be generated easily are: -
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SOURCES
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Rs
in Billions PA
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Home
Entertainment Industry
a. English Home Entertainment
Films
b.
Other Home Entertainment Films
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1.25
1.75
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Book Publishing Industry
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0.50
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Software
Industry
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1.25
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Music
Industry
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1.00
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Textile
Related Industry
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0.75
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Consumer
Industry
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3.00
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Total
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9.
50
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PROBLEMS
& ISSUES INVOLVED
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9. At present following issues and irritants are not only
acting adversely in controlling the blatant piracy but also
creating hindrance in generating additional revenues for
the nation: -
a. ENFORCEMENT OF LAW: - The enforcement of
Copyright laws has been entrusted to the local police. Despite
simple, cognizable and non-bailable requiring a police officer
not below the rank of Sub Inspector to conduct the raid,
the enforcement level remains very poor. The basic reasons
for this are: -
- The local police, being over committed in "other
matters" seldom accord any priority to this crime.
- Lack of education or knowledge about Copyright
law among local police, becomes impediments to prepare
them for initiating criminal cases against the law violators.
A considerable time and resources are spent in liaison,
education and training of the police officials, but frequent
postings/transfers of these official result into restarting
the whole process hence wastage of resources and delay.
- Later, after registration of cases, submission of
"challans" to the courts are delayed considerably
due the official's heavy commitments elsewhere or postings/transfers.
- The delay in filing of "challans" to courts,
results in "justice delayed" indefinitely
and the law violators continue doing illegal activity
with complete immunity.
- This situation results into unnecessary wastage
of national resources and encourages lawlessness.
b. COURT DECISIONS. The results of anti piracy
criminal cases become redundant, due to the delay in case
decisions or negligible sentences. Some of the reasons for
such results are: -
- Magistrates, who are also Executives of their
respective sub divisions, being committed in other "pressing"
jobs, are not available for proceeding with the copyright
cases regularly.
- The offenders continue to break the law blatantly, due
to non-disposal of case quickly and in time.
- Prolonged hearing dates, not only fades out the
effects of criminal case but also result in encouragement
to law violation.
- Due to lack of proper training and education about the
Copyright law, punishments awarded by the magistrates
so far in some decided cases had been terribly insignificant,
thus encouraging more law violation.
c. LACUNA IN LAWS. There is an inherent lacuna
in Copyright law. The minimum mandatory punishment
upon conviction is not been given and has been left to the
discretion of presiding magistrates. Unfortunately, for
various reasons, the advantage of this lacuna invariably
is going to the law violator, who is invariably let off
with paltry fine of Rs 100.00. It would be interesting
to note that out of 4763 criminal cases registered so far,the
courts with 100 % convictions have decided 4600 cases. However
unfortunately, the there had not been a single imprisonment
and even the fines imposed had been negligible. Had there
been minimum of Rs 50,000.00 as fine in each case,
(which each pirate can easily afford to pay), the nation
could have been richer by Rs 230.000,000.00. Revenue
to the tune of Rs 8,150,000.00 can still be generated
from just 163 pending cases without causing any burden
on treasury. A lot more can be achieved from the future
cases.)
d. RAMPANT SMUGGLING. Another cause of revenue
losses in shape of lost taxes is the rampant smuggling
of LDs, VCDs, DVDs and CD-ROM. Despite having some degree
of enforcement under Copyright law, the piracy continues
to flourish in various forms. The fresh consignment of infringing
copies fill in the space immediately while the shelves are
emptied through raids on the VHS format of piracy. The main
cause of this vicious circle is, massive smuggling in, of
LDs, VCDs and DVDs, through land, air and sea. Any body
can bring any kind of film into the country under the garb
of personal baggage. The counterfeit VCDs or DVDs, being
identical to computer CDs (CD-ROM) can easily be smuggled
in. A normal size briefcase is enough to smuggle the films
in DVD or VCD format, worth millions of rupees. Not
only that, but the smuggling in of these films on VCD/DVD
becomes a major source of back-to-back piracy, resulting
into phenomenal revenue losses. The smuggled LDs,
VCDs and DVDs have flooded the market. The number is rising
with each passing day, thus causing colossal damage to the
national economy in shape of lost taxes.
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PROPOSALS
& SOLUTIONS
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- FORMATION OF IPR ENFORCEMENT
FORCE, FROM WITHIN EXISTING RESOURCES.
- ESTEBLISHMENT OF IPR
COURTS.
- MINOR AMENDMENTS TO:-
1. COPYRIGHT ORDINANCE,
1962,
2. MOTION PICTURES ORDINANCE,
1979,
3. TRADEMARK & PATENT LAWS.
4. PTA ACT |
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SPECIAL
ENFORCEMENT FORCE
Keeping
in view the colossal financial as well as reputational losses
by piracy, Copyright law being a Federal law, is required
to be implemented all over the country in its right spirit
and on permanent basis. The enforcement of this law needs
a special attention, through a special IPR ENFORCEMENT FORCE.
The officials for this force may be sent on deputation for
minimum 2 years from existing strength of police and custom
staff. It is proposed that: -
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a. Central Enforcement Cell may be established as part
of the Ministry of Interior & Narcotics Control.
- Composition. Existing Joint Secretary with Section
Officer and representative of CBR and IPR owners.
- Task. To monitor IPR enforcement measures on
nation-wide basis.
b. Four Provincial Cells for each province, along with
one each cell for ICT, NA and AJK be set up exclusively
for enforcement.
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(1) Composition per Div.
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Police
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Customs
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(a) Punjab
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- Lahore Division
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2 Sub Inspectors
8 Constables
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2 Head Constables
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- Faisalabad Division
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same as above
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same as above
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- Rawalpindi Division
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same as above
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same as above
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- All other Divisions
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1 Sub Inspector
4 Constables
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1 Head Constable
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(b) Sindh
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- Karachi Division
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4 Sub Inspectors
16 Constables
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4 Head Constables
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- All other Divisions
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1 Sub Inspector
4 Constables
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1 Head Constable
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(c) N.W.F.P
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- All Divisions
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1 Sub Inspector
4 Constables
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1 Head Constable
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(d) Baluchistan
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- All Divisions
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1 Sub Inspector
4 Constables
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1 Head Constable
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(e) ICT, NA & AJK
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1 Sub Inspector
4 Constables
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1 Head Constable
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| (2) Tasks
(a) Upon receipt of written complaints from
IPR owners or their duly authorised agents or the instructions
from local administration, conduct anti piracy raids under
Copyright Law.
(b) Arrest the accused, seize the infringing
material/equipment and get the criminal cases registered
in the respective police stations.
(c) Prepare the final challans within 24
hours and present the case for hearing before magistrate.
c. Enforcement of Copyright Law is included
in the schedule of Federal Investigation Agency (FIA) so
that this force could also become useful against major illegal
duplication centers/underground VCDs/DVDs factories.
d. Enforcement of Copyright Law may
also be included in the schedule of PATA/FATA.
SPECIAL
DUTY MAGISTRATE
The enforcement or registrations
of criminal cases against the law violators become
an exercise in futility unless the cases are decided
and justice delivered in time. As mentioned in the
brief, despite registration of many cases the decision
from the courts are far less. The main cause for
this is the non-availability of presiding Magistrates
on hearing dates. To avoid this situation, it is
proposed that the IPR Duty Magistrates are earmarked
from the existing strength, to preside the IPR cases
on fixed days/time of the week. The proposal envisages:
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- A certain number of Magistrates
(Class 1) should be designated as IPR Infringement
Magistrates and assigned only the IPR criminal cases.
It should be made mandatory for them to preside
these criminal cases on daily basis.
- Conversely, if for some administrative
reasons, exclusive IPR magistrates can not be made,
than, at least 3 days a week from 9 AM to 1 PM,
be given to the special duty magistrates for IPR
cases. Such arrangements have been already working
in various other fields where magistrates are exclusively
working on given days for different tasks.
- Minimum number of magistrates
required in main cities, for this purpose are:-
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City
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# of Magistrates
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Karachi
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3
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Lahore
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2
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Faisalabad
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1
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Multan
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1
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Hyderabad
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1
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Quetta
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1
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Rawalpindi
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2
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Peshawar
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1
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Islamabad
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1
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CONCLUSION
The proposals if agreed and
implemented can producefollowing results, without
costing a single additional penny to the nation:
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- Generate an additional amount of
Rs 9 billions annually,
to begin with.
- Documentation
of a huge segment of business, so far undocumented,
for GST.
- Enhancement of
Pak prestige among global community,
with regards to IPR
Protection, according to
WTO, TRIPPs etc, thus attracting more
foreign investments.
- Shall set in a trend for
legitimising the business in Pakistan
and help promotion
of tax culture.
- Shall put an end to the
rampant pornography, vulgarity and obscenity
so rampant through uncensored,
smuggled and pirated films.
- Shall help flourishing of
Pakistan culture, artists,
writers and other related
creative enterprises.
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