Pakistan's challenge is not the lack of tax measures but their uneven enforcementWith the tax shortfall widening to Rs450 billion against the downward revised target for the first eight months of FY26 - and Rs670 billion against the original objective - fiscal management is once again under strain. Sales tax collection has been particularly weak, falling short of the revised target by Rs322 billion. Income tax receipts, despite a 15% year-on-year increase, missed the mark by Rs160 billion, while customs duties also underperformed. Tax-evading sectors continue to enjoy a competitive advantage over compliant businesses while tax burden remains skewed toward the salaried class. Pakistan's challenge is not the absence of tax measures but their uneven enforcement.

Source: The Express Tribune March 03, 2026 11:41 UTC