(MENAFN) Pakistan's economy is facing an escalating crisis caused mainly from its distressing tax collection rates, continuing to rely heavily on commercial loans and aids, plus its inability to finance itself, all leading to a USD163 billion public debt.
The country's tax-to-GDP ratio of 9.4 percent is among the lowest in the world, and recent reports blamed the lack of a tax culture on non-revenue sources of funds the country has historically enjoyed in the form of foreign aid and loans.
The country is also facing huge shortfall of up to 4000 megawatts in the summer, due to the affected infrastructure development of power generation that has been driven by the lack of revenue collection.
Pakistan is now in a USD6.6 billion loan program with the International Monetary Fund, which was granted on condition that Islamabad carried out extensive economic reforms, mainly in the taxation sector.
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