Pakistan’s per capita income remains the lowest among regional peers like India and Bangladesh.
According to documents seen by ProPakistani, while India and Bangladesh are witnessing rapid increases in per capita income and exports, Pakistan lags behind ever since outperforming them between 1980 and 2000.
Public spending on education and healthcare is also lower than in neighboring countries. Sources confirmed to ProPakistani that the International Monetary Fund (IMF) has urged Pakistan to revise its tariff policies to boost exports and achieve a tax-to-GDP ratio of 16 percent under its current $7 billion loan program.
The IMF’s demands include imposing taxes on retail, agriculture, developers, and property sectors, alongside reducing the size of the federal government.
The lender expects Pakistan to improve its primary balance from 1 percent to 2.5 percent of GDP during the duration of the bailout program. Sources said if economic targets are not met by December, further revenue measures could be implemented by March 2025.