Breaking the Cycle: Transforming Pakistan’s Economy Through Bold Fiscal Reforms
Written by: Muhammad Abubakar Pakistan faces a daunting fiscal landscape where reforming the taxation system is central to fostering economic stability. The country's tax-to-GDP ratio of 9% in 2024 remains among the lowest globally, starkly contrasting with regional peers like India (16.7%) and developed nations such as Sweden, which consistently exceed 20%. This disparity reflects systemic inefficiencies, including a narrow tax base, rampant evasion, and over-reliance on indirect taxes, disproportionately burdening lower-income groups. Pakistan's fiscal challenges demand bold, transformative action. Incremental measures will no longer suffice. The nation can unlock sustainable growth by prioritizing tax reform, fostering economic transparency, and investing in high-potential sectors. However, this requires unwavering political will and robust public support. The question remains: will Pakistan rise to the occasion?