"Fiscal Challenges and Budget FY25" by Asim Bashir Khan
 

Faculty / School

School of Economics and Social Sciences (SESS)

Department

Department of Economics

Was this content written or created while at IBA?

Yes

Document Type

Book Chapter

Publication Date

7-2024

Author Affiliation

  • Dr. Asim Bashir Khan is a is visiting faculty at IBA and a Public Finance for Children (PF4C) Expert at the Social Policy Section, UNICEF Pakistan

Book or Conference Proceedings Title

The State of Pakistan's Economy 2024-25: Tapping the Economic Potential: Strategies for Productivity and Growth

ISBN/ISSN

9789699759345

First Page

3

Last Page

15

Publisher

IBA Press

Place of Publication

Karachi

Keywords

Tax Targets, Policy Framework, Tax Expenditure

Abstract / Description

Pakistan economy is facing economic slowdown, inflationary pressures, losses from state-owned enterprises, and circular debt. The tax target for FY25 seems over-ambitiously high at PKR 12.97 trillion (10.45 percent of GDP). The target for non-tax revenue has been set at PKR 4.85 trillion, which is 64 percent higher than the revised estimate of FY24. A debt and deficit driven fiscal equation might not have fiscal viability, but the situation will remain unchanged until a decent tax-to-GDP benefit taxation with fair tax incidence and equitable public spending system is in place.

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