Prime Minister (PM) Shehbaz Sharif has approved a plan seeking the International Monetary Fund (IMF) consent to abolish the super tax and provide income tax relief to salaried individuals by 5 per cent.
The government is also considering reducing the maximum income tax rate for the highest salaried income group by five percent to 30 percent.
According to reports, the government plans to abolish the super tax imposed on wealthy individuals and the corporate sector.
The proposal will now be taken up with the IMF following the prime minister’s endorsement.
Earlier, Pakistan’s Finance Minister Muhammad Aurangzeb told a visiting IMF delegation that volatility in global energy markets poses potential risks for the country’s economic recovery, as oil prices rise sharply amid the ongoing conflict between the US, Israel, and Iran in the Middle East.
Pakistan began formal talks with an IMF delegation on Monday, as Islamabad prepares for the next review of its $7 billion bailout program.
“On economic performance, the minister shared that recent indicators point toward gradual recovery, with positive trends in growth and key sectors,” the Finance Division said in a statement on Monday.
“However, he acknowledged emerging global headwinds, including evolving geopolitical developments and volatility in international energy markets, which pose potential risks.”
