Taxation Laws and Policy: Areas of Improvement

The Pakistani economy is suffering from stagflation. Interest rates are used as
a stick to control inflation. If both interest rates are high and inflation is still not
controlled, that speaks to the larger issues with the economy which cannot be solved
with quick fiscal and monetary solutions. If the economy is growing and unemployment
is reduced, inflation increases automatically. In Pakistan, the economy is contracting,
and inflation is increasing – a phenomenon disastrous for any country. The root of the
issues remains a large consuming-oriented population and fewer fossil fuel resources.
The key remains that Pakistan improves tax collection to fund public services. For
that purpose, Pakistan targets must remove bottlenecks in the system and target
untapped areas of potential.

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