LAHORE: Former Federal Finance Minister Miftah Ismail has said that Pakistan’s current tax-to-GDP ratio is 12 percent, which is the lowest in South Asia.
While speaking at a panel discussion organized under the Afkar-e-Taza ThinkFest at Alhamra, Lahore, Sunday, Miftah Ismail stated that Pakistan has to repeatedly approach the International Monetary Fund (IMF) to meet its basic economic needs. He explained that the government collects only 6 percent in taxes relative to GDP, and to cover the remaining gap, it has to turn to the State Bank of Pakistan.
He further said that the larger the current account deficit, the greater the need for US dollars. These dollars can come either through foreign investment or by taking loans. The reality at present; however, is that Pakistan is not receiving sufficient foreign investment, which is why the country is forced to seek assistance from the IMF, he added.
He emphasised that if Pakistan wants to resolve its problems and achieve economic growth, it must reduce its expenditures first. Otherwise, it will be difficult for the country to escape the IMF’s grip.
Copyright Business Recorder, 2026