In a key round of negotiations over the upcoming fiscal year 2025–26 budget, Pakistan and the International Monetary Fund (IMF) held important discussions, with Islamabad requesting relief measures in key tax areas.

According to informed sources, Pakistan’s economic team urged the IMF to consider a reduction in super tax and extend relief to the real estate sector. The government also requested broader concessions, including for the salaried class, to ease the financial burden on citizens.

However, the IMF has so far adopted a strict stance, showing no indication of agreeing to any leniency or relief measures at this stage.

Officials from the Ministry of Finance confirmed that Pakistan remains bound by its agreement with the IMF, and any tax exemptions or relief packages require the lender’s approval.

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Sources revealed that the IMF is evaluating all relief-related proposals based on available data and a comprehensive policy framework. Pakistan has already submitted detailed data across several sectors, prompting a range of queries from the IMF team during technical sessions.

So far, there has been no breakthrough on tax relief, and no new conditions have been finalized between Pakistan and the IMF, the sources added.

IMF projects Pakistan’s GDP growth at 2.6%