Overview
- The fallback taxes are slated for inclusion in the IMF’s second review linked to the release of a $1 billion disbursement.
- Activation would occur only if July–December revenue falls short of projections or if planned expenditure cuts do not materialize.
- GST on imported solar panels would rise from 10% to 18%, with a potential start in January 2026 if the trigger conditions are met.
- Withholding tax on internet services would increase from 15% to 18–20% under the same contingency plan.
- The FBR logged a Rs198 billion Q1 shortfall as the IMF lowered growth to roughly 3.25–3.5% but kept an 11% tax-to-GDP goal, and officials cite Rs1.7 trillion capacity payments and digital access risks.