- The IMF requests the elimination of all incentives from the industrial zone by 2035.
- Pakistan must apply agricultural tax, energy reforms, withdrawal laws.
- The budget for exercise 26 needs approval aligned by the IMF, emphasizing reforms.
Islamabad: The International Monetary Fund (IMF) has introduced new structural references for the liberalization of trade in the upcoming budget, calling for the elimination of all quantitative restrictions on the commercial import of used motor vehicles of under five years, as well as the implementation of a carbon carbon sample by liter ,, The news reported.
To comply with the structural reference until December 2025, the IMF linked Pakistan to prepare a plan based on the evaluation carried out to fully eliminate all the incentives linked to special technological zones and other parks and industrial zones by 2035.
Although the IMF staff report on Pakistan does not specifically mention China, the prohibition of incentives for ZES will certainly contain China in the longer term.
The IMF has made it compulsory to implement the laws adopted by agriculture income tax (AIT) through a full plan, in particular the creation of an operational platform for the processing of yields, the identification and registration of taxpayers, a communication campaign and a compliance improvement plan, adopt legislation for the drafting of the electricity rate in captivity and notifications of the editorial price and Gas tariff adjustments.
In his staff report published on Saturday by Washington DC after the completion of the first review and the publication of the second sous sous Effa and the new resilience of resilience (RSF), it was the state of the IMF to obtain parliamentary approval of a Fy26 budget in accordance with the IMF personnel agreement to achieve the objectives of the program.
IMF staff in its assessment said the risks remain high in an increase in global uncertainty. The external risks increase, in particular from the economic and financial impact of American tariff announcements of April 2 and the reaction of the subsequent market, wider geopolitical tensions, and an increase in the uncertainty of global economic policy, with potential fallout to global financial conditions (already tight) and to basic products. “Pressures in the internal political economy to relax and delay the reforms remain present and can intensify.”
The Minister of Finance and the Governor of SBP have made written commitments which “owed the challenges of an increasingly uncertain external environment and persistent vulnerabilities and structural rigidities of our economy, we are firmly committed to pursuing healthy and cautious macroeconomic policies and structural and institutional reforms to lift Pakistani victims on a long -term and long -term path term.
More specifically, in the coming months, our policies will be guided by the following elements: the prudent execution of the budget for the 2010 financial year will continue and the budget for financial year 26, to be formulated in close consultation with the fund, will serve as a budgetary anchoring with an underlying primary excess of 1.6% of GDP.
Efforts will also continue as planned to increase GDP income, expand the income base and improve tax compliance. Monetary policy will remain appropriate, with a reasonable consideration at the past-time late compared to drops in past rates, in order to ensure that inflation remains permanently in the target rate, while the exchange rate will be authorized to adapt freely to buffer external pressures.
Pakistan is committed to deleting all additional rights (including through import and sale taxes) currently invoiced for “localized” inner articles / inputs in the automotive sector, and to remove the special rights regime applied to imports used for the automotive sector, including by the 5th annex to the Customs and SRO 655 (I) / 2006. Work gradually, as planned in NTP 2025-30.
This principle will also apply to any new production of electric vehicles (EV), which will mean an increase and regularization of prices and other protections (including through preferential sales taxes) of certain inputs. In July 2026, we will seek to extend the principle of the elimination of preferential treatment of local production to other industries, to gradually implement during the period until exercise 30, in consultation with the ministries concerned.