At the Pak-China Business Conference in Shenzhen, China, Senator Mohammad Ishaq Dar, Pakistan’s Federal Minister for Finance and Revenue, announced plans to raise the tax rate to 14%.
Minister Dar presented an optimistic overview of Pakistan’s economic conditions during his speech, citing a robust agricultural growth rate of 6.2% this year. He also highlighted that the State Bank’s foreign exchange reserves have climbed above $9 billion, covering the country’s export needs for two months.
Minister Dar acknowledged the persistent challenge of inflation, which, although high, has shown a significant decrease from last year’s 38% to 11% this year. This reduction has been bolstered by a cut in the policy rate, which has positively impacted the economy. He praised the efforts made during Prime Minister Shahbaz Sharif’s previous tenure, establishing a foundation for economic stability through a standby arrangement. The fruits of these efforts are witnessed with the successful completion of a 9-month IMF program.
Further, the Minister detailed plans to adjust tax rates to between 13% and 14% to match the national income ratio better, focusing on stimulating export-driven growth. He mentioned ongoing discussions with Chinese investors and emphasized the crucial role of special economic zones in enhancing Pakistan’s export capabilities.
