Pakistan’s economic performance continues to impress. The Federal Board of Revenue (FBR) recently surpassed its annual tax collection target for the 2023-24 financial year by collecting a staggering Rs. 9,306 billion, exceeding the target of Rs. 9,252 billion by Rs.54 billion. This translates to a remarkable 30% growth compared to the previous year, a strong indicator of a robust and maturing economy.
This surge in revenue collection represents a significant shift for Pakistan. In the past, the nation relied heavily on import taxes, leaving it vulnerable to fluctuations in global trade. However, a recent policy shift towards domestic resource mobilisation has yielded positive results. By focusing on collecting taxes from high-net-worth individuals and corporations, Pakistan is reducing its reliance on imports and fostering self-reliance. This not only strengthens the economy but also demonstrates a commitment to a fairer tax system.
The government’s commitment to facilitating businesses and exporters is another crucial element in this economic upswing. Prompt issuance of tax refunds — amounting to Rs. 469 billion during FY 2023-24, a significant 42% increase year-on-year — highlights this dedication.
We also see a notable improvement in domestic tax collection, with a 37% growth compared to the previous year. Import taxes saw an 18% increase, highlighting the overall strength of the economy. The composition of domestic taxes within the total revenue collection has also improved significantly, reaching 65% compared to less than 50% just two years ago.
Combined with a thriving stock exchange, Pakistan offers a compelling investment destination for those seeking exposure to a high-growth economy. The dedication and commitment of FBR officials remain vital in achieving future revenue targets and ensuring continued economic progress.
This not only improves cash flow for businesses but also sends a clear message that Pakistan is open for business and actively seeks to support its domestic economy. For the wise property investor wondering how to take advantage of this, One Homes offers top-of-the-line investment properties to overseas Pakistanis. Follow this link to find out which groundbreaking project is right for you.