Finance Secretary hails exemption on agri-input tax as key achievement
ISLAMABAD: Pakistan has finalized its budget targets in agreement with the International Monetary Fund (IMF), successfully negotiating exemptions on agricultural taxes, Finance Secretary Imdadullah Bosal announced Tuesday.
Speaking at a post-budget press conference alongside Finance Minister Muhammad Aurangzeb, Bosal described the outcome as a “major achievement,” particularly the IMF’s acceptance of Pakistan’s request to exclude the agriculture sector from new taxation.
“A tax on fertilizers and agrochemicals was originally slated for the 2024 fiscal year,” Bosal explained. “Although it was postponed last year under the Prime Minister’s directive, we were expected to implement it this year. Yet, we’ve again secured an exemption.”
The finance secretary added that this concession was critical in supporting the country’s large farming community, especially as the government seeks to stimulate growth without adding further burden to rural economies.
Bosal also highlighted the government’s ongoing “right-sizing” initiative, aimed at improving public sector efficiency and reducing unnecessary expenditures. He noted that the long-term benefits of these structural reforms would become more apparent in the coming fiscal cycles.
The development reflects the government’s efforts to strike a balance between IMF program requirements and domestic economic pressures as it navigates the country’s fragile fiscal landscape.
