Islamabad: The federal government has requested the International Monetary Fund (IMF) to allow a reduction in the super tax and provide targeted relief to the real estate and construction sectors during the ongoing budget discussions, according to news sources.
While these proposals are under review, the IMF has not yet accepted or rejected the requests. The government is pushing for a lower rate of super tax and sector-specific tax breaks, citing the need to support economic recovery and stimulate investment.
“No final agreement has been reached so far,” said a source familiar with the negotiations. “Any changes will require mutual consensus under the terms of the current IMF program.”
To back its requests, the government is sharing detailed fiscal data and justifications with the IMF. Officials say Pakistan is looking to balance growth-oriented incentives with fiscal discipline.
According to sources, the IMF has not introduced any new conditions at this stage. However, it has reiterated its demand for provinces to reduce non-essential spending, increase revenue efforts, and improve tax collection — particularly on agricultural income, a historically under-taxed sector.
The budget for the upcoming fiscal year is expected to reflect a blend of these ongoing discussions, with final decisions hinging on further talks with the Fund in the coming days.
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