As the IMF approved a loan of $7b, Prime Minister Shehbaz Sharif visited the Federal Board of Revenue (FBR) on Saturday with loud and clear directions to formulate a strategy and mechanism, coupled with usage of latest technology, to broaden tax net base without further burdening honest taxpayers.
Certainly, it is only through enhanced revenue collection by bringing potential sectors into the tax net and increasing exports that we can lead the country on trajectory of self-reliance and free ourselves from the debt trap.
Though many voices are being raised over the deal signed with the IMF as it has and will further increase woes of the common man in coming days, yet we believe government had no other option. This year alone, the country has to pay back $25b in loans, and we do not have sufficient reserves to do so. In these times, ensuring a timely deal with the IMF was important to give confidence to other lenders as well, encouraging them to engage with Pakistan and provide necessary support in the form of loans. Indeed, knocking at the doors of lenders speaks volumes of our failures, but as also pointed out by the PM, time has come to act swiftly to turn the tables.
The process of digitisation in the FBR needs to be completed in minimum possible time by ensuring simplification of procedures for honest taxpayers. Sectors that have historically been reluctant to pay their taxes need to be brought into the tax net, as this is the only way to reduce burden on already compliant taxpayers. Simultaneously, we must focus on our productive sectors — be it agriculture, industry or IT— to bolster our exports.
The Prime Minister’s call to the FBR is a clarion call for reform and diligence. The success of this initiative lies not just in broadening the tax base but in transforming the way the country perceives and practices taxation. Effective use of technology can streamline tax collection, reduce evasion and foster a culture of compliance. Moreover, simplifying tax procedures can enhance taxpayer experience, making it easier for businesses and individuals to fulfil their obligations without undue stress or bureaucratic hurdles. While the IMF programme provides a lifeline, it is a temporary measure. Long-term sustainability will come from within—by building a robust economy that does not rely on external bailouts. This requires a concerted effort to develop our industries, enhance agricultural productivity and embrace potential of IT sector. By focusing on these areas, we can increase our exports, reduce our trade deficit and build a self-sustaining economy.
It is not through words but action that we can make this IMF programme the last one. To break cycle of dependency on international financial institutions, we, as a nation also have to bring a change in our mindset, reflecting same determination and unity that we demonstrated in development of our nuclear arsenal.
Despite limited resources, we achieved that technological milestone to counter threats from India. It is time that we stand united once again, fulfilling our responsibilities to steer the country in right direction. The beginning should be made with political stability, rising above petty political interests. Only by putting nation’s welfare above individual and partisan agendas can we create a stable environment conducive to economic growth and development.
