Islamabad, Pakistan: In a recent interview, Pakistan’s Minister of State for Finance, Ali Pervaiz Malik, revealed that the Federal Board of Revenue (FBR) is grappling with a significant capacity constraint, hindering its ability to conduct comprehensive audits of tax returns.
Malik’s statement underscores the pressing need for reforms within Pakistan’s tax administration. The FBR, the country’s primary tax collection agency, has long been criticized for its inefficiency and its inability to broaden the tax base.
Malik Said, If we want to move forward with the IMF framework, we cannot simply give up, we cannot afford bankruptcy. Geo News
The Minister also highlighted the broader economic challenges facing Pakistan. He emphasized that the country’s ability to attract foreign direct investment is contingent upon achieving economic stability and providing assurances to investors regarding the repatriation of their profits.
To address the issue of tax evasion, the FBR has announced plans to launch a major crackdown, which includes imposing substantial fines on non-compliant taxpayers.
Meanwhile, Malik defended the government’s decision to secure a high-interest rate loan, arguing that it was a necessary step to maintain Pakistan’s relationship with international financial institutions and prevent an economic crisis.
