KARACHI (Dunya News) - Federal Minister for Planning and Development Ahsan Iqbal has said that Pakistanis pay the least taxes in the world, stressing that a strong economy is built on taxes, exports, and foreign investment.
Speaking at a ceremony in Karachi, he recalled that Pakistan had internally defaulted by April 1, 2022, with fears of an external default looming. He said difficult decisions taken since then, with public support, have led to macroeconomic stability, with interest rates falling from 22% to 11% and credit rating agencies upgrading Pakistan’s outlook.
The minister said the country now has an opportunity for “a new takeoff,” noting that three previous attempts had failed. He admitted that Pakistan still borrows to meet expenses, with the budget deficit standing above 6%, and exports lagging behind competitors despite fierce global competition for foreign investment.
Ahsan Iqbal further said that under the NFC Award, 60% of revenue went to provinces, while the remaining 40% was consumed by debt repayments two years ago. Through reforms, fiscal space of Rs 2,800 billion had been created, allowing the government to fully finance defense spending of Rs 2,500 billion.