Tax Revenue Mobilization in Pakistan: Challenges andRecommendations

Pakistan's economy has been grappling with the challenge of revenue mobilization for decades. This issue has reached a critical juncture where the nation's economic growth, the well-being of its citizens, and even its sovereignty are at stake. Despite numerous policy initiatives and reforms, previous efforts have fallen short of delivering sustainable results. This paper aims to conduct a comprehensive evaluation of Pakistan's revenue mobilization system and identify the critical factors that have been overlooked in past reform endeavors. Our findings suggest that trust is the missing linchpin. Previous reforms have failed to prioritize establishing trust with the most crucial stakeholder in the system: the taxpayer. To address this issue, we recommend that future reform initiatives focus on enhancing governance and structure, improving facilitation, strengthening enforcement and compliance through the implementation of a robust risk management framework, monitoring economic activities and combating smuggling. By prioritizing these areas, Pakistan can foster a more equitable and efficient tax system that promotes economic growth and development.