Islamabad, Pakistan: Pakistan IMF budget talks have ended with sources saying the Fund agreed in principle to consider Rs60 billion in relief for the salaried class.
Prime Minister Shehbaz Sharif raised public concerns with the IMF Managing Director and secured support for several relief proposals. The package is expected to benefit wage earners in the upcoming fiscal year.
Sources said the International Monetary Fund also agreed to an increase in the Benazir Income Support Programme stipend. The proposal forms part of wider social protection measures planned for the federal budget 2026-27.
The government also withdrew pressure for an 18% sales tax on stationery and solar panels. No new sales tax is expected on stationery items, while the solar panel tax may remain near 10%.
Read: Salary Tax Relief Proposed For Rs3.6m Earners
Pakistan was awaiting IMF approval for tax relief measures, while the Federal Board of Revenue targeted collections of Rs15.264 trillion for FY2026-27. Talks covered salaried workers, exporters and the property sector.
The IMF’s Pakistan page shows the country remains under the Extended Fund Facility and Resilience and Sustainability Facility arrangements. The IMF Executive Board completed Pakistan’s third EFF review on May 8, allowing a draw of about $1.1 billion.
Sources said no major tax changes are expected for the stock market and tobacco products in the upcoming budget. Final measures will be confirmed when the federal government presents the 2026-27 budget.
