{
  "id": 6356641,
  "title": "Fiscal reforms’ missing piece",
  "url": "https://urgent.news/2026/09/09/fiscal-reforms-missing-piece",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-09T00:39:59.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40438518/fiscal-reforms-missing-piece"
  },
  "original_language": "en",
  "account": "Finance Minister Muhammad Aurangzeb has affirmed the government's commitment to fiscal reforms, while the Asian Development Bank (ADB) urges immediate action to expand Pakistan's narrow tax base. Despite meaningful progress in reducing the fiscal deficit to 2.6 percent of GDP and achieving three consecutive primary surpluses, a comprehensive revenue system remains elusive. The primary issue lies in the fact that much of the tax collection improvements have been achieved by extracting more from existing taxpayers rather than adding new taxpayers to the tax net. Tax-to-GDP ratio has improved from 8.8 percent to 10.3 percent, with FBR collections rising 40 percent over two years to Rs13 trillion. However, sustainable fiscal stability necessitates a significantly broader tax base, rather than imposing a heavier burden on already compliant taxpayers. The government must focus on bringing larger segments of the economy, such as retail and wholesale trade, into the effective tax net, as they currently enjoy preferential tax treatment. While technology can enhance documentation and compliance, political will is indispensable in overcoming resistance from powerful constituencies and addressing the reluctance to pursue new revenue sources. Pakistan cannot endure endless boom-and-bust cycles if growth inevitably results in widening fiscal and trade deficits, increased borrowing, and recurrent stabilization programs. To achieve lasting fiscal stability, the government must prioritize expanding the tax base as the central objective of its reform efforts.",
  "summary": "EDITORIAL: Finance Minister Muhammad Aurangzeb’s recent assurance that the government will “stay the course” on fiscal reforms, coupled with the Asian Development Bank’s call for urgent action to broaden Pakistan’s narrow tax base comes at a critical juncture. The government has made meaningful progress in restoring fiscal discipline, but it would be a mistake to equate a lower fiscal deficit…",
  "key_points": [
    "Finance Minister Muhammad Aurangzeb committed to fiscal reforms.",
    "ADB urges immediate action to expand Pakistan's tax base.",
    "Expanding tax base essential for sustainable fiscal stability."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}