CIAO DATE: 10/2010
September 2010
Carnegie Endowment for International Peace
Unable to sustain solid growth, Pakistan's economy is teetering on the brink of collapse, with one-third of the population living below the poverty line. S. Akbar Zaidi writes in a paper that Pakistan's economic instability stems in large part from low government revenue due to the elite's use of tax evasions, loopholes, and exemptions. Without tax reform, Pakistan will continue to run an unsustainable debt and be forced to rely on Western donors for bailouts.
Resource link: Pakistan's Roller-Coaster Economy: Tax Evasion Stifles Growth [PDF] - 980K