Additional taxes

To emerge from the worst economic crisis, the government has accepted loans from the International Monetary Fund (IMF) under onerous terms, without which no other choice exists. The government imposed an additional Rs170 billion worth tax-filled mini-budget, which will not only open the path for an IMF loan but will also allow friendly nations to assist Pakistan. The situation demands higher earnings paid more taxes, whether in the public or private sectors, and subsidies be granted solely to those who need them. In terms of natural resources, Pakistan is not a poor country. Poverty is caused by corruption and poor government. Before the government began a campaign to save the country from debt and gathered a large sum of money, owing to economic mismanagement, the debt continued to grow rather than diminish. The IMF has imposed some tough requirements, but its focus on the need to stop untargeted subsidies and redirect resources from the wealthiest to the weaker sectors of society is critical for the country’s economic stability and the abolition of poverty. In the next fiscal year, Pakistan would require $27 billion to pay off loans and mark-ups. This is a challenging moment in terms of foreign exchange reserves. As a result, the IMF proposed that the government tax all those who can afford to pay to the national treasury. In a country of 220 million people, only 350,000 people file tax returns, implying that there is room for increased tax collection that should be pursued.