Analyst Shahbaz Rana has stated that the government’s primary focus is on increasing revenues and taxes, while the focus should instead be on controlling expenditures. He highlighted that funds are being spent in areas that are constitutionally the responsibility of the provincial government, not the federal government.
Speaking on Express News’ program “The Review,” Rana noted that the federal government has spent 638 billion rupees in just three sectors, which are constitutionally provincial matters.
He further mentioned that the government aims for a tax target of 14,307 billion rupees for the upcoming fiscal year, a target contingent upon approval from the International Monetary Fund (IMF). To achieve this target, the federal government would need to impose at least 500 to 550 billion rupees in additional new taxes.
Analyst Kamran Yousaf added that Pakistan’s biggest issue is revenue generation, particularly tax collection. He pointed out that improving tax collection could resolve many of Pakistan’s problems. He also criticized the current fiscal year’s tax target, saying it was unrealistic, given the ongoing tensions between Pakistan and India. Yousaf noted the persistent threat of potential actions from India, raising concerns about the security situation.
He stressed that while Pakistan has made it clear that any hostile action from India would be met with a strong response, it is uncertain where such a conflict would end, and Pakistan would ultimately decide the outcome
