IMF challenges Pakistan revenue plan before new budget
“The IMF has questioned how Pakistan will meet future revenue targets if it abolishes the super tax and eases salary taxation.”
Key points
- The IMF has questioned how Pakistan will meet future revenue targets if it abolishes the super tax and eases salary taxation.
- The matter is set to feature prominently in upcoming budget negotiations.
The IMF has raised questions over Pakistan's revenue strategy for the next federal budget after the government discussed abolishing the super tax and lowering tax rates for salaried higher-income groups. The lender is said to be unconvinced that temporary or one-off measures would be enough to sustain revenue growth into fiscal year 2026-27.
Officials told Geo News that Pakistan plans to engage further with the IMF in the coming months as budget talks advance. The debate centers on how the government would replace lost tax income, with the IMF asking for credible alternative measures before agreeing to any relief. The issue is expected to remain central as preparations for the next budget intensify.
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