In a major embarrassment for Pakistan, Prime Minister Imran Khan said that the rising foreign debts coupled with low tax recovery had become a “national security” issue because the government did not have enough resources to spend on people’s welfare.
While addressing people, Pakistan PM Imran Khan said, “Our biggest problem is that we don’t have enough money to run our country due to which we have to borrow loans.”
Pakistan Prime Minister called the rising foreign debts and low tax revenue an issue of “national security”, stating his government got $3.8 billion worth of foreign loans in the past four months.
He also said that the prevailing culture of avoiding the payment of taxes was a legacy of the colonial period when people disliked to pay taxes as their money was not spent on them.
Failure to generate local resources, the successive governments resorted to loans, said Khan.
According to a recent report, the country also needs gross external financing of USD 51.6 billion within a two-year period (2021-2023) in order to tackle the rising challenges.
Earlier, Advisor on finance Shaukat Tarin said that there were just 3 million taxpayers in Pakistan out of 220 million population, but warned that the government by using technology had identified 1.5 million potential taxpayers and asked them to pay tax before action was taken against them.