Pakistan wants to achieve economic growth of 3.6%, the country's finance minister, Muhammad Aurangzeb, said this week while presenting his first budget to lawmakers.

Aurangzeb emphasized the need to expand Pakistan's tax base as a strategy to prevent overburdening existing taxpayers. The goal of his budget is to ensure equitable distribution of tax responsibilities while meeting revenue targets.

Aurangzeb also said inflation had dropped to 12% per year. Pakistan has been grappling with soaring inflation amid its worst economic crisis in decades. At one point in 2023, inflation went above 40%, sparking angry protests as Pakistanis struggled to afford essential items.

"Now we are moving towards the right direction," Aurangzeb said, adding that Pakistan is setting a challenging target of collecting 13 trillion rupees ($44 billion, €41 billion) in taxes — 40% more than in the current fiscal year.

But Pakistan still faces significant challenges when it comes to collecting taxes. A large part of its economic activity remains informal and unregistered, impacting its fiscal stability and growth.

Amid the soaring costs of essential goods, many ordinary Pakistanis remain doubtful that the budget will deliver meaningful change.

Shahnaz Akhter, a domestic worker in the Pakistani capital, Islamabad,........

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