Economic self-reliance is a clear path towards socio-economic empowerment. Ultimately, socio-economic sovereignty guarantees a thriving society, and economic progress is the very lifeline for a nation’s survival. Unfortunately, Pakistan’s economy has been crippled by pervasive challenges that have yet to be effectively addressed.

The Economic Survey 2024-25 presents a mixed picture. While some areas show improvement—inflation has been reduced from 26% to 4.7%, per capita income rose by 9.7%, and tax revenue surged by 26.3%—the growth-to-GDP target of 3.6% was missed, achieving only 2.68%. Furthermore, the Survey highlighted that macroeconomic reforms and poverty alleviation mechanisms haven’t been properly formulated and implemented. Challenges like a lack of proper mechanisms to extend the tax base, a colossal energy crisis, over-reliance on imports, high unemployment, and critically low foreign exchange reserves have continuously hindered economic prosperity.

In fact, according to data from the Federal Board of Revenue, the tax collection target for the financial year 2022 was Rs. 7,470 billion, but only Rs. 7,200 billion was collected. This resulted in a significant loss of Rs. 270 billion that burdened the exchequer. Compounding this, the National Crime Agency has revealed startling facts: pervasive tax evasion in Pakistan has exacerbated the miseries of the downtrodden strata of society. Taxing the poor while exempting the rich has created a harsh fiscal deficit, which, in turn, increases borrowings and elevates inflation. Moreover, it disrupts the exchange rate, hindering foreign direct investment. Additionally, over-spending on imports has led to an export deficit.

Beyond fiscal challenges, in the book “Issues in Pakistan’s Economy,” the author rightly points out that the agro-based economy has been shunned by stakeholders. Despite more than sixty percent of the total population being linked with the agricultural sector, it contributes only twenty-two percent to the GDP, painting a grim picture of agricultural productivity. Paradoxically, despite huge potential for exporting rice,........

© The Spine Times