The capacity of a country to repay its domestic debt lies in its ability to raise revenues from different sources. Pakistan is wrangling with rising domestic debt, which underscores the need to expand the tax base in order to repay the domestic debt. Haque said that out of a population of 241.49 million, the presence of merely 3.37 million taxpayers highlighted the worrying status of the country’s tax base. Haque emphasised the documentation of the undocumented sectors in order to expand the tax base. Broadening the tax base is of paramount importance for Pakistan as it serves the dual purpose of servicing domestic debts and achieving equilibrium between revenue and expenditure.

Source: The Nation August 30, 2023 13:40 UTC