KARACHI: Pakistan intends to increase its tax-to-gross domestic product ratio from the existing 10.2 percent to 11 percent this year, Finance Minister Muhammad Aurangzeb said on Thursday, as Islamabad pushes for economic reforms.
Pakistan has lately introduced several reforms to ensure economic stability and to meet structural benchmarks under a $7 billion International Monetary Fund (IMF) program Islamabad secured last year.
The South Asian country has one of the lowest tax-to-GDP ratios in the region, despite a population of more than 240 million, and has often failed to meet its tax collection targets.
Speaking at the Atlantic Council in Washington, Aurangzeb outlined initiatives to bring agriculture, retail and real-estate sectors into the tax net, improve compliance through technology and AI-driven analytics.
“He reaffirmed the government’s commitment to raise the tax-to-GDP ratio from 10.2 percent to 11 percent this year, and to 13 percent over the medium term, ensuring fiscal sustainability,” the Pakistani finance ministry said.
