Federal Minister for Planning and Development Ahsan Iqbal on Saturday said exports, increase in tax revenue and investment are needed for Pakistan's economic progress.

Addressing a ceremony in Lahore, the federal minister said, “We need to flip the entire economy of the country, assess the opportunities available in international markets and use our production capability to produce exports.

“Exports are the only option available for Pakistan in order to advance forward.”

Iqbal pointed out that Pakistan’s tax-to-GDP ratio is among the lowest in the world at 9.5%. “All developed countries have a tax-to-GDP ratio in the range of 18-20%. We need to double our tax collection in order to generate funds needed to improve the infrastructure,” he said.

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“Until we take our tax revenue to Rs20,000 billion, Pakistan does not have the space to ensure rapid economic growth. Thus, economic reforms are required, we need to broaden our tax base and curb tax evasion."

Pakistan missed its deficit target for the last fiscal year as the financial year (2021-22) was closed with a deficit of 7.9 per cent or Rs5.259 trillion against the 6.3 per cent target set in the budget.

Meanwhile, Iqbal said Pakistan needed to focus on increasing exports.

The federal minister was of the view that the reason behind Pakistan’s lagging in enhancing its exports was due to the country’s inability to focus on global competitiveness.

“There is a lacking of constant entrepreneurial growth in Pakistan due to education and social factors,” he said.

“Thus each graduate, regardless of their field of study, should have a non-credit course in entrepreneurship and export-marketing,” said the minister, adding that he has directed the higher education board in this regard.

“The third thing for economic growth is investment,” said Iqbal, adding that Pakistan only attracted $1.5 billion in foreign investment annually, which is far lower in comparison to Vietnam and Myanmar.

“Foreign investment is crucial as it leads to a linkage with the global supply chain, and the emergence of new ideas."

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The federal minister highlighted that growing circular debt is a challenge, which has already risen above Rs1,500 billion and is increasing.

On improving trade ties with China, Iqbal said that the neighbouring economic power is importing goods worth $2,250 billion from the world, while Pakistan only has a minuscule share of $3 billion. “We need to evaluate how we could increase our trade with our neighbour."