Archive · 25 May 2025

World Bank: Pakistan's GST Contributes to Poverty, BISP Helps

World Bank: Pakistan's GST Contributes to Poverty, BISP Helps

A World Bank study found that Pakistan's General Sales Tax (GST) is making poverty worse.

GST takes up a large part of what low-income families spend, causing them financial strain.

The study suggests the government should collect more taxes and spend them more wisely.

The Benazir Income Support Programme (BISP), which gives money to the poorest families, helps reduce inequality.

The report criticizes Pakistan's tax system for relying on indirect taxes like GST and not enough on taxes that target richer people.

Poor families end up paying more in taxes than they receive in benefits.

Sources