IMF pushes Pakistan to withdraw more tax concessions in upcoming budget: sources
Key takeaways
- According to sources, the government expects to generate around Rs40 billion in additional revenue in the next fiscal year by scaling back tax relief measures.
- Sources said the federal government has decided not to extend several tax exemptions beyond June 30, 2026, and is planning to increase revenue by phasing out a number of tax concessions in the FY2026-27 budget.
- The income tax exemption currently available to the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) is expected to expire on June 30, 2026.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are continuing negotiations on the upcoming federal budget, with the IMF reportedly asking the government to further reduce tax exemptions and concessions to boost revenue collection, ARY News reported citing sources.
According to sources, the government expects to generate around Rs40 billion in additional revenue in the next fiscal year by scaling back tax relief measures.
Sources said the federal government has decided not to extend several tax exemptions beyond June 30, 2026, and is planning to increase revenue by phasing out a number of tax concessions in the FY2026-27 budget.