November 20, 2008
Pakistan was in the spotlight again this week over its need to reform the tax system as the government and potential donors worked on a plan to help the state in the face of a financial crisis. Just one percent of tax is collected in Pakistan. …
Under the IMF loan, Pakistan is seeking to borrow $7.6bn until the last quarter of 2010 to stave off a crisis on forthcoming debt payments. The government’s net liquid foreign currency reserves, which are below $3bn, are just enough to pay for about two to three weeks of imports.
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