The International Monetary Fund (IMF) rejected Pakistan’s proposal to slash the General Sales Tax (GST) on electricity bills, denting hopes for consumer relief amid the economic overhaul.
Sources say the IMF Pakistan GST rejection also axed an extension of the winter relief package for industrial and agricultural sectors, piling pressure on Islamabad’s fiscal plans.
Pakistan pitched a Rs1.25 trillion loan at 10.8% from commercial banks to zap circular debt—a deal now locked in and briefed to the IMF. Meanwhile, talks churn on tax breaks for real estate, property, beverages, and tobacco, pending IMF nods, could ease those burdens. Next budget? Salaried folks might catch a tax break, while a Rs250 billion tax haul from retail and other sectors awaits the final green light.
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The IMF Pakistan GST stance stalls relief for power users and industries, forcing Pakistan to pivot. With circular debt in the crosshairs thanks to that hefty loan, the government is juggling reforms and revenue. Sources hint all eyes are on IMF approval to seal these moves. Will Pakistan’s balancing act pay off?
The IMF Pakistan GST clash nixing GST cuts and relief spotlights Pakistan’s tightrope walk with the IMF.
