IMF urges Pakistan to transfer the burden of rising petrol prices directly to consumers.
Published On 14 May, 2026
Officials are currently sharing fiscal data with the IMF delegation as discussions continue over the country’s upcoming federal budget and new tax measures worth more than Rs400 billion.
According to reports, Ishaq Dar has been assigned the central role in preparing the upcoming budget.
A committee headed by Dar will finalise tax proposals and key fiscal recommendations for the next financial year.
IMF raises concerns over revenue gap
Sources said the IMF expressed reservations over the Rs683 billion tax shortfall and pushed for faster implementation of agricultural income tax collection.
Under the proposed framework, all four provinces are expected to fully enforce taxes on agricultural income during the next fiscal year.
The IMF delegation also reportedly advised the government to revisit annual economic targets, especially regarding tax revenue projections.
Growth and tax targets under pressure
During the briefing, IMF officials were informed that the government’s economic growth target of 4.2 percent is unlikely to be achieved.
Officials also acknowledged that meeting the revised tax collection target of Rs13,989 billion for the current fiscal year would be difficult.
IMF wants oil price burden shifted to consumers
The IMF further stressed that the burden caused by fluctuations in global oil prices should be transferred to consumers.
According to sources, more than Rs1,330 billion in petroleum levy has already been collected from consumers, while the overall target stands at Rs1,468 billion.
To reduce the fiscal deficit, the IMF urged the government to maintain strict fiscal discipline in the upcoming budget.
The lender also emphasised increasing allocations for health, education, infrastructure, and social protection programmes.
Sources added that the IMF recommended spending at least 3 percent of GDP on health and education sectors.
The IMF reportedly insisted that the implementation of the National Fiscal Package should not face further delays.
According to sources, there will be no concessions or relaxations regarding the implementation of the fiscal reforms agreed upon with the global lender.
