The report also highlights that the majority of revenues in Pakistan are collected at the federal level, primarily through indirect taxes on consumption.
One of the key challenges noted in the report is the minimal revenue generated from agricultural income tax, with over 90% of farmers falling below the tax threshold. Additionally, total provincial revenue collection remains less than 1% of GDP.To address these challenges and enhance revenue generation, the World Bank has launched a new program titled"Reforms for a Brighter Future: Time to Decide.
Najy Benhassine, the Country Director for Pakistan at the World Bank, emphasized the importance of open debates on concrete policy decisions to achieve inclusive, sustainable, and climate-resilient development.