Shafaqna Pakistan: The International Monetary Fund (IMF) has urged the government of Pakistan to end subsidies on petroleum products as early virtual discussions begin for the 2026–27 federal budget.
According to reports, the IMF stressed that timely revisions in fuel and energy prices are essential to prevent additional strain on public finances. It also called for the immediate implementation of recommendations issued by regulatory bodies on electricity and energy tariffs.
The IMF further advised limiting tax exemptions and concessions in the upcoming budget.
Among the proposals under consideration are expanding the tax base, reducing sales tax exemptions, lowering government spending, and raising the tax-to-GDP ratio by at least one percent.
Reports said Pakistan and the IMF are currently working on key fiscal targets for the next budget, while improved global conditions and economic reforms could help the country achieve a medium-term growth target of 5.5 percent in the next fiscal year.
Source: Dunya News
