Punjab: tax reforms with foreign loan! – Dr Ikramul Haq

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According to a Press report, following in the footsteps of the Federal Government, the Punjab Government has decided to borrow $ 304 million from the World Bank for tax reforms. Earlier, the Federal Government obtained loan of $400 million for Pakistan Raises Revenue (PRR) Project. Such loans, though not at all required, are being taken when debt-to-GDP ratio has reached an alarming level of 87.2% by June 30, 2020-15% increase is by PTI Government in its two years’ tenure which is against the promises of Premier, Imran Khan, during election campaigns that after coming in power, the Government of Pakistan Tehreek-i-Insaf (PTI) would not take foreign loans but would raise revenues with own efforts to the extent of Rs. 8 trillion.