KARACHI: The International Monetary Fund (IMF) has called on the Pakistani government to gradually phase out tax incentives currently offered to Special Technology Zones and Industrial Zones.
During ongoing negotiations, IMF officials stressed that Pakistan must develop a comprehensive plan to eliminate all such incentives by 2035.
The plan must be finalized and submitted by the end of this year as part of Pakistan’s commitments under its current agreement with the IMF.
The goal, according to the IMF, is to improve fiscal discipline and ensure greater transparency in revenue collection.
Officials from Pakistan’s Ministry of Finance confirmed that, for the first time in the country’s history, the national budget is being prepared under a staff-level agreement with the IMF.
As a result, the government shall meet all financial targets without exception.
Finance ministry sources also revealed that the upcoming budget is unlikely to include any major development projects due to strict fiscal constraints.
The government will instead implement austerity measures to control the budget deficit and meet IMF conditions.
