Gallup Pakistan Survey: 84% Support Paying Taxes, 11% Favor Evasion

Pakistanis overwhelmingly support paying taxes, survey finds, as government negotiates IMF loan to drive economic reforms and growth.

Safak Costu
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Gallup Pakistan Survey: 84% Support Paying Taxes, 11% Favor Evasion

Gallup Pakistan Survey: 84% Support Paying Taxes, 11% Favor Evasion

A recent Gallup Pakistan survey has revealed that a significant majority of Pakistanis, 84%, support paying taxes, while only 11% favor tax evasion, deeming it harmful to the national economy. The survey highlights the public's growing awareness of the importance of tax compliance for the country's economic well-being.

The findings provide valuable insights into the attitudes of Pakistani citizens towards taxation and the potential for improving tax collection efforts in the country. The survey results come at a time when the new Pakistani government is engaged in negotiations with the International Monetary Fund (IMF) to unlock billions of dollars in lending and bolster the country's economic reform agenda.

Finance Minister Muhammad Aurangzeb has stated that there is no need for a significant currency devaluation as part of the IMF negotiations, with the rupee expected to depreciate within the typical range of 6-8% per year. The government is looking to support industries like agriculture and IT to push the nation's growth above 4% in the coming years.

Pakistan plans to seek a traditional IMF loan through the extended fund facility and also wants to access funds via the IMF's new Resilience and Sustainability Trust. The key objectives in the loan negotiations include broadening the tax base, improving debt sustainability, and restoring viability to the energy sector.

Why this matters: The Gallup Pakistan survey results underscore the public's willingness to contribute to the nation's economic development through tax compliance. As Pakistan seeks IMF assistance to support its economic reforms, the government's ability to broaden the tax base and improve revenue collection will be crucial in achieving sustainable growth and financial stability.

The survey's findings serve as an encouraging sign for policymakers, indicating that a vast majority of Pakistanis recognize the detrimental effects of tax evasion on the national economy. As Finance Minister Aurangzeb noted, the government's focus on supporting key industries and maintaining a stable currency depreciation rate will be essential in driving economic growth and meeting the objectives set forth in the IMF loan negotiations.

Key Takeaways

  • 84% of Pakistanis support paying taxes, 11% favor tax evasion.
  • Pakistan seeks IMF loan to broaden tax base, improve debt sustainability.
  • Finance Minister expects typical 6-8% annual rupee depreciation, no major devaluation.
  • Government aims to support agriculture, IT sectors to boost growth above 4%.
  • Public's tax compliance willingness is crucial for Pakistan's economic reforms.