Pakistan’s per capita income remains the lowest among its regional peers, such as India and Bangladesh, according to documents. While India and Bangladesh have experienced rapid growth in per capita income and exports, Pakistan has struggled to keep pace since outperforming these countries between 1980 and 2000.

In addition to lagging income growth, Pakistan’s public spending on education and healthcare is also lower compared to its neighbors. International Monetary Fund (IMF) has urged Pakistan to revise its tariff policies to enhance exports and achieve a tax-to-GDP ratio of 16 percent as part of its ongoing $7 billion loan program.

The IMF’s recommendations include imposing taxes on the retail, agriculture, developers, and property sectors, as well as reducing the size of the federal government. The lender expects Pakistan to improve its primary balance from 1 percent to 2.5 percent of GDP over the course of the bailout program.

Sources added that if Pakistan fails to meet these economic targets by December, additional revenue measures may be implemented by March 2025.