ISLAMABAD: Pakistan has successfully finalized its fiscal year 2025 budget targets in agreement with the International Monetary Fund (IMF), according to Secretary Finance Imdadullah Bosal. Crucially, the government secured a key exemption on agriculture taxes, marking a significant win for the farming sector.
Speaking at a post-budget press conference alongside the Finance Minister, Bosal stated that Pakistan convinced the IMF not to impose taxes on agricultural inputs, including fertilizers and agrochemicals, despite initial commitments to do so this year.
“The tax on fertilizers and agrochemicals was originally scheduled for the last fiscal year,” Bosal explained. “Under the Prime Minister’s directive, we negotiated with the IMF to defer it—and we succeeded once again this year.”
A win for the agriculture sector
The decision not to tax agriculture inputs comes as a relief for farmers and agribusinesses, who had expressed concerns about the rising cost of production. Fertilizers and pesticides are essential to Pakistan’s crop yields, and any taxation could have had ripple effects on food inflation and supply chains.
Bosal labeled the exemption as a “major achievement”, showcasing the government’s ability to balance IMF conditionalities with domestic economic priorities.
Reforms and right-sizing in focus
The finance secretary also spoke about ongoing public sector reforms, noting that the government’s right-sizing efforts are aimed at improving efficiency and reducing waste.
“These steps will pay dividends in the medium to long term,” he noted.
The announcement arrives at a time when Pakistan is negotiating a new long-term IMF program and trying to strengthen investor confidence through credible and sustainable budget planning.
