Taxes, Exports, and Investment Are Key to a Strong Economy
Federal Minister for Planning and Development Ahsan Iqbal has said that Pakistanis pay the lowest taxes in the world, emphasizing that a strong economy is built on the pillars of taxation, exports, and foreign investment.
Address at Karachi Event
Speaking at a ceremony in Karachi, Ahsan Iqbal recalled the severe crisis two years ago, stating that by April 1, 2022, Pakistan had already defaulted internally, while speculation mounted over when an external default might occur. He credited the public for supporting the government during those difficult decisions, adding that the country is now witnessing what international agencies describe as a macroeconomic turnaround.
Economic Recovery and Ratings Improvement
The minister highlighted that the interest rate has come down from 22 percent to 11 percent and that every international rating agency has improved Pakistan’s credit outlook. Pakistan Raises Bank Withdrawal Tax for Non-Filers, Adjusts Property Transaction RatesWe have been given another chance to take off, he said, referring to earlier attempts at economic revival that, in his words, “crashed.”
Fiscal Challenges Remain
Despite improvements, Ahsan Iqbal admitted that Pakistan still relies on borrowing to meet many of its expenditures. He noted that the budget deficit remains above 6 percent, exports have not grown in line with global markets, and there is stiff competition worldwide for foreign investment.
NFC Award and Reforms
Commenting on fiscal distribution, the minister said that due to the NFC (National Finance Commission) award, 60 percent of revenues go to the provinces, while two years ago the remaining 40 percent was entirely consumed by debt servicing. However, through reforms, fiscal space of Rs. 2,800 billion has been created in the past two years, which has enabled the government to independently cover Rs. 2,500 billion in defense expenditures.
