Pakistan’s deteriorating economy is not hidden from anyone. If Pakistan, which is in poverty, had not received a loan from the IMF last year, it would have been difficult for it to even arrange two meals a day. However, Pakistan is again stuck in the same situation, where it has to appeal to the IMF for money with a ‘bowl’. Meanwhile, PM Shahbaz Sharif has given a big statement regarding India.
At present, people in Pakistan are trying to somehow escape from the country, but its Prime Minister is busy competing with India. Shehbaz Sharif on Saturday said that if Pakistan works hard and honestly, it will leave behind India or even a bigger economy. Pakistan is currently facing a cash crisis and Shehbaz Sharif’s comments have come at a time when tax evasion in the country is at its peak.
Tax evasion (revenue gap) is estimated to be approximately 5800 billion Pakistani rupees ($20 billion) during 2022-2023, which is 6.9 percent of the gross domestic product (GDP). On the other hand, New Delhi has said this week that India has collected a record $ 25.15 billion (Rs 2097 billion) in the form of GST in April, which is 12.4 percent more than last year.
Shehbaz Sharif, upon attending the Federal Bureau of Revenue (FBR) meeting on Saturday (May 4), expressed optimism about Pakistan’s economic potential, suggesting that with concerted effort, the nation could surpass India or even achieve a larger economy. This statement coincides with reports of significant tax evasion totaling Rs 5.8 trillion in the neighboring country during the financial year 2022-23, equivalent to 6.9 percent of its GDP.
Shahbaz Sharif is aware that India has made a record in GST collection, that’s why when he reached the meeting, he mentioned India. Recently India has collected 25.15 billion dollars as GST. There has been an increase of 12.4 percent in comparison to last year. Tax evasion in Pakistan has reached approximately $20 billion, surpassing the GST collection in India, highlighting the magnitude of the issue in the neighboring country.
In the meeting, the Pakistani PM said that the countries that have believed in giving rewards and punishments regarding the economy have made progress. Referring to the challenges being faced by Pakistan, he said, “Collecting revenue is a big challenge. Neighboring countries are far ahead of us.” Talking about corruption, Shahbaz said, “Due to corruption and fraud, the government treasury is not increasing. That’s why we have to go to the IMF.”
