‘Achieving SDGs not possible unless tax-to-GDP ratio increased to 20pc’

ISLAMABAD: Unless Pakistan does not increase its tax collection ratio with its economy’s size to one-fifth, it would be unable to achieve the Sustainable Development Goals (SDGs) to end poverty and income inequality among the masses.

“Our government is committed and is taking steps for the course correction and our prime target is to enhance tax-to-GDP ratio to 20 percent,” Federal Minister for Planning, Development and Reforms Khusro Bakhtiar said while addressing a National Consultation on Pakistan's Voluntary National Review preparation on SDGs here.

In recent years, Pakistan’s efforts to achieve SDGs have been severely hindered by combination of internal and external factors. These factors include high population growth, large segment of proportion below poverty line, not exploiting the potential of growth, trade imbalances with major trading partners and instability in political relationship with neighbouring countries.

Challenges posed by climate change, natural disasters, cost of war on terror of Rs10.374 trillion from 2001 to 2017, low tax-to-GDP ratio, the impacts of the global economic recession, lack of financial resources, low resource mobilisation at provincial level and high dependency on federal transfers also restrained government efforts for stable growth and sustainable development.

The minister further said that unless the private sector is incorporated in the process of SDGs implementation, the indicators will be hard to achieve. He said the government has recognised the private sector for partnering to complement its efforts to achieve the SDGs.

“SDGs is national agenda which is above the party line,” the minister said. Khusro Bakhtiar said that despite challenges, Pakistan has firm resolve to continue its efforts for attaining sustainable development by implementing the global development agenda of SDGs comprising of 17 goals and 169 targets.

Pakistan, he said, is not only endorsing the sustainable development agenda but has also taken lead in prioritising 17 goals according to development needs. Khusro Bakhtiar said the Ministry of Planning and Development in collaboration with provinces and local governments launched National Initiative on SDGs to mainstream and accelerate SDGs implementation in the country.

“Our focus during forthcoming years will be on strengthening and improvement in social and human development, like mother and child health, education and pulling households out of poverty through sustainable poverty reduction strategies,” he added.

"We need to improve coordination with the stakeholders including private sector, development partners and strengthen reporting mechanisms," he added.

The minister said the Planning Commission is committed to ensure that the voluntary national review (VNR) process is inclusive and the aspirations of stakeholders particularly those of private sector are incorporated in the report, adding that it will help in disseminating knowledge about the development and will also highlight shortcomings. The review would help in improving government policies, interventions and mobilise multi-stakeholder support to develop much needed partnerships.