Pakistan's low tax-to-GDP ratio (8-9%) hinders public services and economic growth, with a budget deficit of Rs6.9 trillion (7.4% GDP).

Pakistan's low tax-to-GDP ratio, averaging 8-9%, hampers public services and economic growth, with a budget deficit of Rs6.9 trillion (7.4% of GDP). The article suggests that increasing national income and fostering investment, as seen in China, may be more effective than just raising taxes. Improving business conditions and reducing corruption could enhance the investment rate, currently 14%, supporting sustainable economic development and higher tax revenues.

September 16, 2024
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