Pakistan is facing a potential brain drain of 800,000 skilled professionals by 2025 due to regressive tax policies. According to findings published in the Business Recorder, the state’s fiscal strategy prioritizes funding an unproductive administrative elite over supporting its manufacturers. The report notes that Pakistan lacks the institutional framework of a welfare state, yet it demands welfare-state levels of taxation from just 4% of its workforce. These taxpayers face 35% income tax rates while receiving almost no public services in return. As the government struggles to meet IMF-driven debt repayments of 9 trillion rupees, the pressure on the formal sector continues to mount, driving talent abroad.
