How Will Pakistan Resolve Tax Policy Disagreements?
Pakistan and the IMF are at an impasse over tax policy changes, particularly on income tax rates for salaried and non-salaried individuals, and a proposed 18% sales tax on essentials. The IMF suggests raising the top income tax rate to 45%, affecting both groups, while Pakistan prefers to keep it at 35% for salaried individuals. The government also resists the sales tax on essentials due to inflation concerns. Negotiations continue, with Pakistan under pressure to secure a new IMF loan to avoid default.
