‘Pakistanis pay the lowest taxes in the world,’ says Ahsan Iqbal

Minister for Planning and Development Ahsan Iqbal has said that Pakistanis pay some of the lowest 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 two years ago, on April 1, 2022, Pakistan had already defaulted internally, and fears of an external default were looming.

He said that despite those tough times, the nation supported difficult economic decisions, which has now led to stability.

“Today, Pakistan is being recognised for macroeconomic change, interest rates have dropped from 22 percent to 11 percent, and global rating agencies have improved our standing,” he stated.

The minister remarked that the country has been given “time for a new takeoff,” adding that earlier three attempts had failed due to political and economic crises.

Check: PTI shares video of student criticising Ahsan Iqbal at Oxford Union debate

Highlighting challenges, Ahsan Iqbal admitted that Pakistan still borrows for expenditures, with the budget deficit standing above 6 percent.

“Our exports have not grown in line with global trends, and there remains a tough competition for foreign investment,” he added.

He further explained that under the NFC award, 60 percent of revenue goes to provinces, while the remaining 40 percent is largely used to service debt.

However, through reforms over the past two years, fiscal capacity of Rs 2,800 billion has been created, enabling the government to allocate Rs 2,500 billion for defense from its own resources.