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Pakistan has lowest Tax collection, Cash Economy hurdle: PM Imran Khan

January 11, 2021

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Addressing at the launch of SBP’s Rast digital payment system in Islamabad, Prime Minister Imran Khan said, Congratulations to SBP for the launch of program. He regretted that there is a population, but we cannot reach its full potential. Prime Minister Imran Khan praised SBP’s new digital payment system, saying Pakistan collects nearly the lowest taxes in the world.

He said that “the casheconomy is an obstacle for the country to benefit from 220 million population, the biggest loss in the cash economy is related to tax collection, Pakistan collects almost the lowest tax in the world.”

“In our 220 million population, about 2 million people pay taxes, and out of 2 million, only 3,000 Pakistanis pay 70% of taxes,” he said.

“This obstacle is due to the fact that we cannot build our infrastructure, we cannot educate children, we cannot improve hospitals, the fastest growing country in the region 50 years ago cannot move forward because it does not have much money for development countries.

Imran Khan said: “We cannot spend as much money on our people as we should. This is a big step towards digital Pakistan. Just as it keeps us from drugs, we will gradually move away from the money economy. ” There are banks from which we can benefit 220 million people.

“Through live streaming, we can also engage the lower class in our development. We are trying to reduce poverty through the Ehsas program, using mobile wallets and discussing women’s bank accounts, ”she said. Live streaming will push this forward.

The Prime Minister said: “I congratulate the SBP for the steps it has taken for our overseas Pakistanis. Our foreign reserves have grown at a record pace, never in Pakistani history. ”

He said our Pakistanis were officially transferring money overseas, which turned a current account deficit that had lasted for years into a five-month surplus, and people didn’t care how profitable it was.

He said that the biggest benefit from this is that the pressure on our rupee has eased because the current account deficit puts pressure on the rupee, which especially affects the poor.

He said that the current account surplus is making Rupee Stronger and encouraging Pakistanis to send money through normal channels.

The Prime Minister said that real efforts are being made to improve our economy. The biggest problem we face is that the informal economy is so large that we cannot collect taxes and the country cannot develop.