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IMF Narrows Focus on New Tax Measures

  • The International Monetary Fund approved a second $1.023 billion tranche under the Extended Fund Facility for Pakistan on May 14, 2025.
  • This disbursement followed Pakistan's economic reform progress under a $7 billion EFF program started in September 2024 amid mixed international reactions.
  • Pakistan’s fiscal measures include a record Rs437 billion income tax paid by the salaried class in ten months of the current year, exceeding last year by Rs150 billion.
  • The IMF urges reducing the salaried class tax burden by at least Rs100 billion and questions the Federal Board of Revenue's operations to improve fairness.
  • Pakistan plans a federal budget unveiling on June 2, 2025, with tax targets of PKR 14.3 trillion and ongoing IMF talks expected to guide fiscal policies.
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AUGAF broke the news in on Tuesday, May 13, 2025.
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