Govt rules out tax amnesty for smuggled vehicles

The Pakistani government has reassured the International Monetary Fund (IMF) that no tax amnesty schemes will be introduced concerning smuggled vehicles or asset declarations.

There will be no tax exemptions, zero-rating, or tax credits granted, and no preferential tax treatment will be extended to any sector under this declaration.

Focus on risk management in major cities

Risk management systems will be implemented in tax offices across Islamabad, Karachi, and Lahore. The government has committed to increasing the tax-to-GDP ratio by 3 per cent within the next three years and aims for a primary surplus of 2 per cent of GDP by the fiscal year 2027-28.

Moreover, the government has pledged not to introduce any new subsidy schemes, including fuel subsidies, during this financial year and in the future. Existing subsidies and exemptions will be gradually phased out.

Commitment to foreign exchange policy and market stability

The government has also assured the IMF that it will refrain from unnecessary interventions in the foreign exchange market. No artificial measures will be taken to stabilise the rupee’s value, and a flexible exchange rate policy will be maintained.

Additional expenditures outside the annual budget will not be undertaken, and any such expenditures will require parliamentary approval. Development projects included in the Public Sector Development Programme (PSDP) will be selected based on merit, and an annual cap will be placed on the size of these projects.