Overview
- After an August directive from Prime Minister Shehbaz Sharif, the FBR sought IMF consent to scrap the levy but failed to secure approval.
- Officials pressed the case by email and in a virtual meeting, saying the relief would cost only Rs400–600 million.
- IMF staff pointed to a mid‑year revenue shortfall and the FBR’s revised FY2025–26 target of Rs13.979 trillion.
- The lender also dismissed cuts for sanitary pads and baby diapers, noting larger revenue exposure, with diapers tied to a base near Rs100 billion.
- Pakistan remains bound by IMF programme conditions focused on revenue and enforcement, so contraceptives stay taxed at 18% until the next budget window.