Pakistan, May 11 -- Pakistan today finds itself trapped in a dangerous economic vortex where the state is attempting to increase revenue by placing ever-growing pressure on the economy, while the economy itself continues to shrink under that very burden. Industries are shutting down, employment opportunities are shrinking, consumption is falling, and consequently, the tax base itself is collapsing. It is a self-defeating economic model in which the state appears more focused on squeezing the economy than expanding it.

In my view, Pakistan's core problem is not simply low taxation; it is the extraordinarily high cost of production. When industrial electricity prices in Pakistan range between 45 and 65 rupees per unit, while competing econ...