Former Caretaker Federal Minister of Commerce and Chairman Economic Policy and Business Development Gohar Ejaz has said that Pakistan need economic stability and there were no need of currency devaluation which will bring inflation, reported 24NewsHDTV Channel.
Taking to social media site X, Gohar Ejaz said that the average REER for FY25 stands at 100, indicating that there is no need for further devaluation. Devaluation disproportionately harms 92% of our economy, while nearly 50% of our population is already living below the poverty line.
He said those advocating for devaluation largely represent vested interest groups seeking marginal, short-term gains, at the expense of the livelihoods of the people of Pakistan ????????. Gohar Ejaz said tax collection from businesses increased from Rs. 2.28 trillion in 2022 to Rs. 5.26 trillion in 2025. Similarly, tax collected from salaried employees increased from Rs. 188 billion in 2022 to Rs. 575 billion in 2025. Gohar Ejaz said overall, the Federal Board of Revenue (FBR) collected Rs. 6.1 trillion in 2022, which has grown to Rs. 11.7 trillion in 2025 — nearly doubling in just three years. The target for the current fiscal year stands at Rs. 14.13 trillion.
Chairman Economic Policy and Business Development said contrary to the commonly cited figure of a 10% tax-to-GDP ratio last year, the actual ratio was 12.2% when including the Petroleum Development Levy (PDL) and provincial taxes — all of which are ultimately paid by the people of Pakistan. In other words, we collected 12.2% of GDP in total taxes from the people of Pakistan. For this year, the tax-to-GDP target has been set at 13.1%.
Chairman Economic Policy and Business Development said the maximum tax rate should be reduced to 20% for all classes of taxpayers. He said Pakistan must broaden the tax net and ensure that no exemptions or sacred cows remain in the system.