ISLAMABAD – World Bank has raised questions over Pakistan’s expenditures of 1124 billion, as the country of over 240 million is facing the worst economic crisis in recent times.
Pakistan is among the top nations that might face a sovereign debt default soon; the country’s External Debt reached $124.3 billion in mid-2023.
Amid the dilapidating economic situation, the World Bank (WB) told Islamabad to collect more taxes, urging the government to do more to hit actual capacity. It said the country is falling short of Rs737 billion in tax collection.
The multi-lateral financial institution also advised Pakistan to increase tax incomes from agriculture, properties, and retail businesses to garner additional funds. It said real estate and agriculture hold untaxed wealth.
The reports suggested that the real estate sector is paying Rs402 billion tax in Pakistan, quite less than its actual capacity, while WB recommended South Asian nation to simplify its income tax structure, for both salaried and non-salaried persons.
Furthermore, the Bank’s report said Federal Excise Duty on cigarettes should be collected by up to Rs268 billion.
In previous reports, the financial institution told Islamabad to cut various subsidies to save funds.
World Bank launches ‘Reforms for a Brighter Future’ in Pakistan
