Pakistan faces a severe economic crisis marked by high inflation and mounting debt. The country is still waiting for the formal approval of a $7 billion IMF loan, which includes tough measures like tax hikes. However, the focus should be on curbing revenue loss from illicit trade rather than imposing additional taxes on the public. Illicit trade costs Pakistan around $150 million per month according to some reports, with the real-estate sector alone evading Rs500 billion in taxes each year while the illicit tobacco trade results in Rs310 billion in losses.
Finance Minister Muhammad Aurangzeb has noted that without raising tax rates, Pakistan will continue to rely on IMF loans. Yet, raising taxes alone isn't a viable solution. The government should instead implement a comprehensive strategy to combat illicit trade, focusing on enhanced border control, stricter regulations, and better compliance monitoring.
Usama Ghulam Rasool
Karachi
It feels as if we’ve started mistaking dependency for progress. Just staying functional is being celebrated as...
The government has announced a Rs7.41 per unit reduction in electricity prices under seasonal tariff adjustments....
Agricultural progress holds great significance for the country’s development. A ‘green revolution’ can be...
The escalation in the trade war triggered by US President Donald Trump’s tariffs barrage has caused turmoil in...
Karachi has been grappling with a significant number of traffic accidents, many of which are attributed to heavy...
The worsening condition of roads in Pehalwan Goth, Karachi has made driving in this area a test of endurance. The...