A news report published by the IMF on 10 November 2016 contains an interview with the IMF mission chief for Pakistan.
The report notes that Pakistan’s economy has stabilized and that economic growth has been increasing during the recent three year period of economic reform. A reduction in the fiscal deficit has been achieved through a reduction in energy subsidies and the collection of additional tax revenue through the removal of tax exemptions and concessions. The government has systematically brought more economic groups within the scope of taxation.
Tax collection is however still below the levels collected in comparable countries. This low revenue collection limits the scope for investment and social spending. There are fairness issues as there is still widespread tax evasion.
Pakistan has adopted a comprehensive strategy to improve the climate for business. However the indicators for business climate and governance are still low. Also the financial sector is still underdeveloped. The gender gap in terms of social and economic criteria is still one of the widest in the world.
