Prime Minister Shehbaz Sharif has secured key relief measures from the International Monetary Fund (IMF), paving the way for financial support for salaried workers, low-income families, students and consumers in the upcoming budget, sources said.
According to sources, the prime minister held discussions with IMF Managing Director Kristalina Georgieva and highlighted the economic challenges faced by ordinary citizens, convincing the lender to show flexibility on several proposals.
Sources said the IMF has agreed in principle to provide relief to the salaried class, with the government securing tax relief worth around Rs60 billion for wage earners.
In another major development, the IMF has reportedly agreed to an increase in stipends under the Benazir Income Support Programme, a move expected to benefit millions of deserving families across the country.
The government has also succeeded in persuading the IMF to withdraw pressure for the imposition of an 18 per cent sales tax on solar panels and stationery items, sources said.
Officials said a proposal to exempt solar panels from the planned 18 per cent sales tax remains under consideration, while the upcoming budget is expected to retain the existing 10 per cent tax rate on solar imports.
Students and parents are also likely to receive relief after the government decided against imposing the proposed 18 per cent sales tax on stationery products, according to sources.
Meanwhile, no major changes are expected in taxation on stock market investments and tobacco products in the new budget, sources added.
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