Pakistan’s Economy
By: Sidra Shah
Despite rising deficits, Pakistan’s tax revenue was only 13 percent of its GDP in 2018.
During the current fiscal year, the country has seen a decline in its revenues while expenditures have increased, resulting in a half-year fiscal deficit of 2.7 percent of GDP, the highest since 2010-11.
According to the State Bank of Pakistan, the sharp decline in revenue can be attributed to a fall in development spending, reductions in income and corporate taxes, andbujh taxes on petroleum products, as announced by the previous Pakistan Muslim League-Nawaz (PML-N) government.