Federal Planning Minister Ahsan Iqbal has said that Pakistanis pay some of the lowest taxes in the world. He stressed that a strong economy depends on tax collection, exports, and foreign investment. Speaking at a ceremony in Karachi, he explained that Pakistan was on the brink of financial collapse two years ago. He claimed the country had already defaulted internally by April 1, 2022.
However, Iqbal said difficult decisions helped stabilize the economy. Interest rates dropped from 22% to 11%, and international credit rating agencies upgraded Pakistan’s ratings. He credited public support for making reforms possible and said the economy now shows positive signs. According to him, Pakistan has a chance to “take off” again, after past failed attempts.
Despite progress, Iqbal admitted the government still borrows money to cover other expenses. The budget deficit remains above 6%, and exports have not grown in line with global trends. He noted that Pakistan lags in attracting foreign investment compared to competitors. The country needs to do more to remain economically competitive.
Iqbal also explained the strain caused by the NFC Award, under which 60% of revenue goes to provinces. The remaining 40% was previously used to repay debts. However, recent reforms created Rs2,800 billion in fiscal space. This enabled the government to fund Rs2,500 billion in defense spending without extra borrowing.
He concluded by urging citizens to support the government’s economic agenda. He stressed the need for fair tax contribution from all sectors. According to him, without stronger revenues, sustainable development and economic independence are not possible.