The National Assembly’ endorses a motion by the Standing Committee chaired by former finance minister Syed Naveed Qamar criticizing Pakistan’s reliance on indirect taxes. UNDP warns of fragile economy despite gradual recovery.
A parliamentary committee has expressed serious concerns over the government’s lack of adherence to its own laws and inaction towards sustainable economic reforms, particularly noting continued dependence on indirect taxes such as petroleum levies rather than expanding the country’s tax base. The panel also highlighted that Pakistan must improve fiscal management practices.
The committee accused the government of consistently failing to circulate and publish its Budget Strategy Paper (BSP) by May 10, a move urged as early preparation for formulating budgets crucial for economic recovery. It suggested that this inaction hinders effective fiscal planning.
The National Assembly has backed the committee’s concerns and called on Prime Minister Imran Khan to undertake immediate reforms towards developing a sustainable tax system, thereby enhancing Pakistan’s financial stability and boosting economic recovery. The meeting highlighted that inaction could lead to worsening inflation rates with projected figures exceeding 12%.