New Taxes Target Exporters and Retailers to Boost Revenue
National Assembly Passes IMF-Led Budget Focused on Existing Taxpayer Base
In an attempt to squeeze out revenue from existing taxpayer, a much critised policy is yet again adopted. While the economy in a state of shambles, it was expected the government would shift its focus on exploring new tax base and renew confidence of stakeholders on the economy.
It appears the government has not heeded suggestions from trade bodies and the business community represented by Chamber of commerce. For a successful implementation, getting businesses and other stakeholders on board is essential.
Achieving macroeconomic stability is crucial for laying the groundwork to foster growth, boost employment, and enhance the overall quality of life. Pakistan’s economy entered a stabilisation phase in FY 2024, driven by the government’s focused efforts to successfully conclude the 2023 Stand-By Arrangement (SBA). These efforts have resulted in significant strides towards restoring economic stability, characterized by a resurgence in moderate growth and a reduction in external pressures. Despite persistent inflation, there are now indications of a downward trend.
The Government has introduced a budget aimed at fostering inclusive and sustainable growth to steer the economy towards stability. According to provisional estimates for FY24, Pakistan’s GDP growth has marginally improved to 2.38%. While this marks a notable increase compared to FY23, the growth in FY24 was predominantly driven by the agriculture sector. However, inflationary pressures persisted throughout the year, compounded by sluggish growth of 1.2% in the industrial and services sectors, contributing to a stagflation scenario in Pakistan. Nonetheless, several key macroeconomic indicators exhibited signs of improvement during FY24.
