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Pakistan Proposes Tax Relief for Salaried Class in IMF Budget Talks
Govt proposes 10% tax cut for salaried class in IMF talks; potential Rs50bn relief if approved. Budget talks to continue from May 14–22.
ND
by News Desk
2025-05-12
Pakistan Proposes Tax Relief for Salaried Class in IMF Budget Talks

The Government of Pakistan has proposed key taxation measures during its ongoing discussions with the International Monetary Fund (IMF). A major highlight of the proposal is a 10% reduction in the tax burden for the salaried class across various income slabs.

According to a report by senior journalist Mehtab Haider published in Jang and The News, the government aims to provide tax relief amounting to as much as Rs50 billion, contingent on IMF approval.

The government and the IMF are scheduled to hold budgetary talks from May 14 to May 22, with both sides expected to finalize the fiscal framework for the next financial year during this period.

Official sources have confirmed that while Pakistan is pushing for tax relief for salaried individuals, it has also agreed to introduce additional revenue measures to offset the anticipated loss in tax income. These compensatory measures are likely to include indirect taxes, levies on non-essential items, and enhanced documentation efforts.

The proposal is seen as a balancing act between easing the burden on the working population and maintaining fiscal discipline under IMF oversight. The salaried class in Pakistan has long demanded relief from high tax rates and inflationary pressures.

If accepted by the IMF, the relief would mark a rare win for middle-income earners and could offer much-needed breathing room amid rising costs of living. However, the final decision rests on how well the government convinces the IMF of its alternative revenue plans.

This round of talks is considered crucial as Pakistan aims to secure a new long-term loan agreement following the expiry of its previous bailout package. A deal on the budget framework would signal policy continuity and could pave the way for future financial support.

 
Tagged:

PakistanEconomy

IMFTalks

TaxRelief

PakistanBudget2025

SalariedClass

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