Fiscal independence requires broad tax base, efficient spending and sustainable growth – a view from a tax expert.

Pakistan’s most recent fiscal data shows that tax revenue rose from 9.6 % of GDP in fiscal year 2024 to 11.2 % in fiscal year 2025, and the overall fiscal position improved. The increase indicates that electoral adjustments are possible, yet it does not solve long‑term structural weaknesses. Fiscal independence is defined as the state’s ability to raise sufficient domestic resources to meet essential obligations, pursue development priorities with policy autonomy, and be accountable for how public money is used. It is not a state of never borrowing; many economies borrow to support growth. Problems arise when borrowing becomes a substitute for reform. Persistent fiscal weakness limits policy choice and forces the government to introduce emergency revenue measures, increase transactional taxes, compress development spending, accumulate liabilities, or rely on external financing dictated by immediate need. Broadening the tax base must go beyond registering more taxpayers. Genuine growth means more people actually declaring taxable income for the first time, contributing a meaningful share, and maintaining compliance over time. Targeting untaxed capacity in wholesale trade, agriculture, real estate, and digital activities can expand the levy base. Fiscal independence also depends on disciplined expenditure. Reducing waste without cutting investment in education, health, and infrastructure protects long‑term economic returns. Efficient use of resources is as important as revenue collection. Economic growth is essential. A stagnant economy cannot be taxed indefinitely into prosperity. Policies that encourage investment, export expansion, productivity, and formal employment help generate the sustainable revenue needed for fiscal independence. The author, a tax professional with experience in corporate and international taxation in Pakistan, provides these observations within a broader policy discussion.