Pakistan, April 17 -- The World Bank has strongly criticized Pakistan's tax system, calling it "highly unfair and flawed," and urged authorities to effectively bring real estate into the tax net. It stressed that broadening the tax base is crucial to reduce the growing burden on the salaried class.

During a conference titled "Pakistan's Fiscal Path: Fostering Transparency and Trust" hosted by PIDE in Islamabad, World Bank Lead Country Economist Tobias Haque said all forms of income must be taxed, including from the property sector. He added that digitizing the tax system would help expand the base and ease pressure on middle- and lower-income groups.

Highlighting inefficiencies, PIDE Vice Chancellor Dr. Nadeem Javed revealed that 40% of...