Islamabad: The Pakistan Business Forum (PBF) has issued a call for improved tax compliance among traders and shopkeepers, emphasizing the need to boost government revenue and stabilize the national economy. The appeal comes in response to challenges in meeting the ideal tax-to-GDP ratio, which remains significantly low compared to global standards.

According to Zameen.Com, PBF President Khawaja Mehboob-ur-Rehman highlighted that despite a 29% increase in tax revenue last year, Pakistan’s tax-to-GDP ratio is only 8.8%, well below the advisable 15%. He also noted a decrease in inflation to single digits in August and projected a potential reduction in the policy rate by the State Bank of Pakistan. Rehman stressed the critical need for diversifying exports beyond the textile sector, which currently dominates the country’s export landscape.

He outlined strategies for enhancing Pakistan’s economic resilience, including the promotion of value-added industries, investment in technology, and improved trade relations with emerging markets to decrease the trade deficit and bolster foreign reserves. Rehman also called on the government to attract more foreign direct investment by enhancing political stability, upgrading infrastructure, and streamlining regulatory frameworks.