PAKISTAN’S tax effort appears to have plateaued. Or so the latest IMF projections stress. After a jump of 1.4 percentage points in the tax-to-GDP ratio to 10.3pc in FY25, largely through additional revenue-enhancing measures that mostly burdened captive taxpayers — the salaried class and compliant businesses — the FBR tax collection as a ratio of the country’s GDP is projected to stagnate for the next five years. The only modest gains, if any, will likely come from provinces, and that too if they decide to effectively tax agriculture income and services. The Fund expects the provincial tax-to-GDP ratio to jump from........

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