Pakistan is preparing to introduce a mini-budget ahead of the next full-year budget. The government plans to impose several new taxes on various categories of goods. According to an ARY News report, this move aims to meet strict revenue targets. It also seeks to bridge a significant financing gap in the current fiscal year.
Key measures include a 5% increase in the federal excise duty on fertilisers and agricultural pesticides. The government will also introduce new taxes on high-value sugar products. Pakistan has assured the International Monetary Fund (IMF) that it will impose an 18% sales tax on several specified items. These steps are part of additional revenue measures under the IMF program.
The IMF noted Pakistan aims to increase its tax-to-GDP ratio to 15%. The country must bridge a USD 4 billion financing gap this fiscal year. To address this, Pakistan expects USD 2 billion in IMF instalments. It may also receive USD 1 billion under the Saudi oil facility and budget support from multilateral banks.
Read: IMF Imposes 11 New Conditions on Pakistan Targeting Corruption and Sugar Sector
New tax measures are included in the Memorandum of Economic and Financial Policies (MEFP). This document outlines conditions for Pakistan’s next IMF loan tranche. The Federal Board of Revenue (FBR) has assured further taxes if revenue falls short of expectations. The IMF also set an August 2026 deadline for changes to the State-Owned Enterprises (SOE) law.
Other commitments include full deregulation of the sugar sector and energy sector reforms. Over the next two years, Point-of-Sale (POS) systems will be installed in 40,000 major retailers nationwide. The government aims to harmonise sales tax across all four provinces to streamline collection.
Only 10% of the Public Sector Development Programme (PSDP) will go to new projects, while the government will prioritise ongoing schemes worth approximately Rs 2.5 trillion. The upcoming fiscal year will emphasise climate-related projects, and authorities will improve public procurement transparency through upgraded digital systems.
Social safety nets will also see changes. Quarterly payments under the Kafalat Programme will increase to Rs 14,500 from January 2026. The beneficiary base will expand to 10.2 million people.
