Karachi: Major United Nations’ economic survey released projected an acceleration in country’s economic growth for current year and next with real GDP growth of two percent and 2.3 percent, respectively.

It also projected an ease in inflation from 26 percent in 2024 to 12.2 percent in 2025. 2024 Economic and Social Survey of Asia and Pacific region, released by UN Economic and Social Commission for Asia and Pacific noted that economy faced political unrest that had adverse impacts on business and consumer sentiment while massive flood disrupted agricultural production.

It noted that an agreement with International Monetary Fund in mid-2023 and further assistance from China, Saudi Arabia and United Arab Emirates had helped economy regain some macroeconomic stability during 2023.

Survey pointed out that economy was undergoing fiscal adjustments to restore stability through various measures such as removing subsidies for power sector. It noted that despite low tax levels, tax gaps were moderate, although such gaps were not necessarily small if measured as share of current tax revenues rather than share of GDP.

Overall improvements in socioeconomic development and public governance would be needed as well as tax revenue enhancement on larger scale, survey suggested. Survey recommended stronger public revenue collection, which would not only help close “Tax gap” but also reduce fiscal risks and borrowing costs.

Published in The Daily National Courier, April, 05 2024

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