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    In order to boost legal channel remittances a long due step has been taken namely linking one’s custom free baggage allowance with one’s legal channel remittances. An Overseas Pakistani rmitting US$2500 will be entitled to US700 custom free baggage and one sending US10,000 entitled for US$1,200/- free allowance. There is an urdu phrase “goat gives milk but also put its digestive waste in it”.

    One may differ with Pir Sahib Pagara on his politics but not on his wisdom and patriotism. Last year he stated “advisers of government themselves need services of advisers”. And this is really true.

    I have US$10,000. This US$10,000 is to go to my family in Lahore. If I send it I will be entitled to US$1,200/- customs free allowance. I am a Matriculate only and not that educated and wise as that of government advisers. I wonder why should not I use my matriculated education and send out of this US$10,000, Dollars 2500 my husband, 2500 my daughter, 2500 my son and balance 2500 myself so each of us four remitters each get US700 custom free allowance totalling US2800 instead US700 only if I
    send all this myself. After all US10,000 will reach my same family in Lahore whether I send in one go or in 4 instalments.

    Wonderful advisers and their wisdom. Who sends more gets less. But this is not surprising. We are a nation of keep doing such wonderful and wise thing in all fields. For example world over land/surface
    mail rates always are less than airmail as air transportation is costly. But under our same “wisdom” our postal bureaucracy has prescribed surface mail rate Rs. 4 per letter but airmail at Rs. 3/-.

    I was never too good at economy so hlep me out here, but isn't what you are saying more a question of higher cost to government than a question of less reward to the person sending more remittance?

    I mean if you look at it, the person sending $10000 in your example does get more custom free allowance than the one sending $2500, i.e. 1200 compared to 700.
    In addition to that you have just pointed out that a way for the person sending 10000 in total to get a custom free allowance of 2800.
    True the increment to the custom free allowance involved for a higher remittance is disproportionate but you have just pointed out a way for the sender to make it proportionate.
    So how is the sender losing out?

    But in terms of cost to government, does the incentive to send smaller amounts (but more frequent) harm the government or favour it? provided the total remains un-affected. Can it remain un-affeted if incentive for higher single remittance is lower?

    [This message has been edited by Ahmed (edited June 25, 2001).]