Pakistan’s economy was saved by last-minute loans from friendly countries and an IMF rescue package, but the country still faces severe financial challenges like high inflation and massive public debts. Prime Minister Shehbaz Sharif emphasized the need for drastic measures to improve revenue collection, including taxing those who have been avoiding taxes.
To unlock a new IMF loan, Pakistan had to agree to reforms such as increasing household bills and enhancing tax revenues. The country aims to raise nearly US$46 billion in taxes during the current financial year, with unconventional methods like blocking SIM cards of non-taxpayers.
Despite the IMF loan and promised economic stability, Pakistan’s public debt remains massive and servicing it will consume a significant portion of the government’s income. Critics argue that the reforms are only superficial and may not address the root causes of the country’s economic woes.
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