As negotiations between Pakistan and the International Monetary Fund (IMF) progress concerning the upcoming fiscal year’s budget, the Pakistani government has agreed to several of the IMF’s key demands. These include the withdrawal of tax exemptions previously granted to the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA).
The two sides have also agreed to impose a petroleum levy starting July 2025, with the fuel levy expected to reach Rs100 per liter. This step is part of a strategy to boost non-tax revenue and address the growing circular debt in the power sector.
Currently, the levy stands at Rs78 per liter for petrol and Rs77 for diesel. The proposed increase is designed to reduce power sector subsidies and improve overall financial discipline in energy pricing.
Talks have also covered plans to lower customs duties, additional customs, and regulatory duties under the upcoming New Tariff Policy 2025–2030, which aims to promote trade and economic efficiency.
These developments reflect Pakistan’s broader effort to meet IMF conditions for fiscal stability and secure future loan tranches as part of its long-term economic strategy.
