ISLAMABAD: Pakistan’s per capita debt has reached Rs333,000 following a 13% rise in the last fiscal year, according to official data. The rising public debt in Pakistan has sounded the alarm for both the government and the economy, the volume of which has reached 76 percent of the country’s GDP.
According to the latest official data, the debt burden on every citizen of the country has reached an average of Rs 333,000 after an increase of 13 percent during the last fiscal year.
According to the report, an increase of about Rs 39,000 was recorded in the debt per Pakistani during the year, after which the pressure of public debt has increased further.
Economists say that the continuous increase in debt is becoming a worrying situation for the country’s economy.
According to the data, Pakistan’s total public debt has increased to more than Rs 80.5 trillion, which is about 70 percent of the gross national product (GDP).
The report also revealed that the average annual income of every Pakistani is about Rs 532,000, meaning that a large part of a citizen’s annual earnings has become equal to the debt burden.
According to the documents, the total debt of Pakistan has increased to Rs 97,307 billion, while last year it was Rs 89,774 billion. Thus, in just one year, the debt has increased significantly by Rs 7,533 billion.
According to economic experts, the situation is also considered serious because the country’s total economy or GDP is about Rs 127,000 billion, while the debt ratio has reached 76 percent.
Budget proposal includes 19% GST, tax increase on Solar, Electric and Hybrid vehicles
Regarding the upcoming federal budget, the International Monetary Fund (IMF) has proposed increasing the General Sales Tax (GST) rate from 18 per cent to 19 per cent. However, the government opposes this increase, arguing that it will lead to higher inflation.
Additionally, the IMF has suggested imposing higher taxes on solar panels, electric vehicles, and hybrid vehicles. The proposal includes raising the GST on electric vehicles from 1 percent to 18 per cent, increasing the sales tax on hybrid vehicles from 8.5 percent to 18 per cent, and raising the GST on solar panels from 10 percent to 18 per cent.
The IMF has also approved a fixed tax scheme for retailers. Under this scheme, retailers with an annual turnover of up to Rs 200 million will pay a fixed tax of Rs 25,000, and small retailers will be exempt from audits.
According to sources, the Federal Board of Revenue (FBR) is facing challenges in meeting the tax target for the current fiscal year. In the first 11 months, the FBR collected Rs 11,232 billion in revenue, but an additional Rs 2,747 billion is needed in June to achieve the target by June 30.
FBR officials have denied reports about an increase in GST, stating that no final proposal for raising the tax is currently under consideration. No decisions have been made regarding taxes on solar panels, electric vehicles, and hybrid vehicles either.
Furthermore, the IMF has projected that the average inflation rate will be 8.4 per cent in the next fiscal year.
