Pakistan’s government officials often repeat the same tired line: “Pakistanis don’t pay taxes.” It’s a narrative designed to shame citizens while distracting from the real problem: a government addicted to wasteful spending in one of the world’s poorest countries.

This narrative is repeated so frequently that it has become accepted wisdom. Yet a closer look at the data tells a very different story. Pakistan’s tax-to-GDP ratio is broadly in line with countries of similar income levels. The real problem lies not with citizens but with the state’s inability to control its bloated expenditures and generate sustainable economic growth.

The numbers tell a very different story.

Pakistan vs. SAARC: The reality on taxes

According to the OECD’s Revenue Statistics in Asia and the Pacific (2025) and World Bank data, Pakistan’s tax-to-GDP ratio in 2023 was 10.5%. How does that compare to our neighbors?

Tax-to-GDP Ratios in SAARC Countries (2023)

What the numbers really show

According to World Bank data and recent official reports for fiscal year 2024-25, Pakistan’s tax-to-GDP ratio stands at about 10.6%, with a GDP per capita of approximately $1824. At first glance, some argue this is “too low.” But context matters. When compared with countries of similar income per capita, Pakistan’s ratio is not an outlier:

• • Pakistan: ~10.6%, GDP per capita ~$1,824
• • Sri Lanka: ~9.9%, GDP per capita ~$3,833
• • Bangladesh: ~6.56%, GDP per capita ~$1,500–$2,000
• • Nepal: ~19.1% (2018), GDP per capita ~$1,399
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