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Why do only 8% pay tax in Pakistan?
Out of 137 million bank accounts in Pakistan, only 5.9 million people file taxes
Jun 27, 2025
Jun 27, 2025
Out of 137 million bank accounts in Pakistan, only 5.9 million people file taxes
In a country where 60% of adults hold bank accounts, but fewer than 1 in 15 file taxes, the problem isn’t invisibility, it’s inaction
Despite repeated calls for broadening the tax base, policymakers remain hesitant to bring largely undocumented sectors into the net
Rising costs, unstable supply & policy gaps threaten competitiveness as U.S. tariff shifts add pressure
Despite the base cost of fuel being significantly lower, taxes and other charges sharply inflate retail prices
Currently, Pakistan’s annual tax exemption threshold stands at PKR 600,000 — significantly lower than comparable figures in neighboring countries