A new fiscal compact

PAKISTAN’S forthcoming budget confronts a difficult reality. The formal economy is overtaxed, investment remains weak, exports struggle to compete regionally, and salaried individuals face rising tax burdens even as inflation erodes purchasing power. Yet meaningful tax relief appears fiscally difficult at a time when economic growth is slowing, debt servicing costs remain elevated and IMF discipline continues to constrain policy choices. This dilemma has triggered an important national debate. I...