The International Monetary Fund (IMF) has raised concerns regarding Pakistan’s revenue strategy following the government’s decision to abolish the super tax and reduce salary tax rates. This development was reported on March 10, 2026, as the IMF engaged in virtual discussions with Pakistani authorities.
The IMF mission highlighted potential shortfalls in meeting the fiscal year 2026-27 tax collection targets, despite the Federal Board of Revenue’s (FBR) projections of collecting Rs13,400 to Rs13,500 billion by June 2026 through one-time measures such as litigation and enforcement.
Pakistani authorities assured that these measures would not be isolated incidents, emphasizing ongoing efforts to resolve court cases that could yield significant revenue in the upcoming budget. The IMF has also recommended adjusting the rupee against the US dollar according to the Real Effective Exchange Rate (REER), potentially depreciating the rupee to Rs290-300 per dollar from its current rate of Rs280.
In a recent meeting at the Prime Minister’s Office, it was decided to request the IMF to approve the abolition of the super tax and a 5% reduction in salary tax rates for the next budget. However, the IMF questioned the government’s plan to compensate for the Rs150 billion revenue gap resulting from these tax changes.
The Tax Policy Office within the Ministry of Finance has begun preparing budgetary proposals for the fiscal year 2026-27. Following the IMF and World Bank Spring Meetings from April 13 to 18, 2026, further discussions on finalizing the budget will take place. The IMF’s approval will depend on Pakistan’s ability to present alternative revenue measures.
Published in SouthAsianDesk, March 10, 2026
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