The International Monetary Fund (IMF) has advised the Pakistani government to gradually eliminate tax exemptions currently granted to Special Technology Zones and Industrial Zones.
As part of ongoing discussions under the existing IMF agreement, officials emphasized the need for a detailed roadmap to phase out all such incentives by 2035. The plan must be finalized and submitted by the end of this year.
According to the IMF, the move is intended to strengthen fiscal discipline and enhance transparency in revenue collection.
Pakistan’s Ministry of Finance officials confirmed that, for the first time, the federal budget is being crafted under a staff-level agreement with the IMF. This means the government is obligated to meet all financial targets without deviation.
Due to tight fiscal conditions, sources within the ministry indicated that the upcoming budget will likely exclude any significant development initiatives. Instead, the government will focus on austerity measures to reduce the budget deficit and comply with IMF directives.
