KARACHI: Pakistan’s finance chief said on Friday the country’s tax-to-GDP ratio was expected to reach 10.6% by the end of the current fiscal year, according to an official statement, as the government works to build on economic progress made under recent International Monetary Fund (IMF) loan programs.
Pakistan’s tax-to-GDP ratio, one of the lowest in the region, stood at around 8.8% in fiscal year 2023-24. Finance Minister Muhammad Aurangzeb has repeatedly warned that such low levels of revenue mobilization are unsustainable and pose long-term risks to fiscal stability.
Aurangzeb shared the projection while briefing representatives of Standard & Poor’s Global Ratings as part of Pakistan’s ongoing sovereign ratings review.
“The Finance Minister presented a detailed overview of the government’s macroeconomic reform agenda and reaffirmed Pakistan’s commitment to achieving sustainable and inclusive economic growth by enhancing productivity and promoting exports,” the finance ministry said in a statement after the meeting.
He said Pakistan’s external portfolio was well-managed, with foreign exchange reserves projected to reach $14 billion by the end of June.
“He further stated that the tax-to-GDP ratio was expected to reach 10.6 percent by the end of June, which would mark progress toward the government’s target of raising it to 13 percent by the conclusion of the 37-month Extended Fund Facility (EFF) with the International Monetary Fund (IMF),” the statement said.
Pakistan has taken several steps to improve revenue collection, including the automation of processes at the Federal Board of Revenue (FBR), the operationalization of the National Tax Council and the imposition of agricultural income tax.
It has also separated the Tax Policy Office from the FBR to better align tax policymaking with broader economic goals.
Aurangzeb also highlighted recent surpluses in both the primary balance and the current account, along with falling inflation and current account deficit figures, which he said were contributing to improved economic fundamentals.
During last month’s IMF-World Bank Spring Meetings in Washington, the Pakistani finance chief held over 70 engagements with rating agencies, development finance institutions, investors and think tanks.
The government also maintains the international community broadly supports Pakistan’s reform agenda, as it tries to maintain its overall economic momentum.

KARACHI: Pakistan’s top generals on Friday blamed last month’s tourist shootings in Indian-administered Kashmir on New Delhi’s “governance failures” and its strategy of using such incidents for political gain, while warning Pakistani security forces were ready to respond to any attack on the country’s sovereignty, according to an official statement.
India blamed Pakistan for the April 22 attack in the scenic town of Pahalgam, in Kashmir’s Anantnag district, where gunmen killed 26 people in one of the deadliest assaults on civilians in nearly two decades.
Pakistan denied involvement, though tensions escalated as India expelled Pakistani diplomats and nationals, closed a key border crossing and suspended the decades-old Indus Waters Treaty (IWT), which has governed the distribution of river waters between the two countries since 1960.
Pakistan’s top general gathered at the General Headquarters (GHQ) in Rawalpindi earlier today to review the geo-strategic environment, with particular focus on the Pakistan-India standoff and the broader regional security situation, the military’s media wing, Inter-Services Public Relations (ISPR), said.
“The Forum noted, with serious concern, India’s consistent pattern of exploitation of crises to achieve political and military objectives,” the ISPR said. “They have been following a predictable template — whereby internal governance failures are externalized.”
“These incidents have often coincided with unilateral moves by India to alter the status quo, as seen in 2019 when India similarly exploited the Pulwama incident to unilaterally alter the status quo of Indian Illegally Occupied Jammu & Kashmir, through revocation of Article 370,” it added.
The 2019 Pulwama attack killed 40 Indian paramilitary personnel and was also blamed on Pakistan before New Delhi revoked the region’s special constitutional status to integrate it in the Indian union, a move repeatedly condemned by Islamabad.
The generals expressed concern that India was now using the Pahalgam shootings to undermine the IWT and “usurp Pakistan’s legitimate and inalienable water rights.”
The statement called the move a dangerous attempt to “weaponize water,” threatening the livelihoods of more than 240 million Pakistanis and increasing strategic instability in South Asia.
The commanders also voiced alarm over what they described as credible evidence of Indian military and intelligence involvement in orchestrating militant violence inside Pakistan.
They accused New Delhi of using the Kashmir attack to divert attention from its own domestic challenges and to provide “operational breathing space” to what they called “Indian terror proxies” targeting Pakistan.
While reaffirming Pakistan’s commitment to regional peace and stability, the generals warned that any attempt to impose conflict would be met with a “sure and decisive” response.
Chief of Army Staff General Asim Munir praised the operational readiness and morale of Pakistan’s armed forces and emphasized the need for vigilance and proactive readiness across all fronts.
“Deliberate destabilization efforts by the Indian government will be confronted and defeated with resolve and clarity,” the ISPR said.