Specific commitments include levying excise duties on fertilisers, agricultural medicines, and surgical items, as well as applying 18 per cent sales tax on selected goods.

Pakistan has presented an important plan to the IMF to meet its tax targets and manage fiscal risks.

The country is prepared to implement additional tax measures and reduce expenditures to ensure full tax collection by the end of this month.

Plans have also been made to impose extra taxes in case of lower-than-expected revenue collections.

Proposals include increasing excise duty on fertilisers and agricultural medicines by 5%.

Pakistan has also assured the IMF of levying 18% sales tax on certain specified items.

The IMF report highlighted that Pakistan aims to increase its tax-to-GDP ratio to 15% but will need to cover a $4 billion financing gap in the current fiscal year.

In terms of external support, Pakistan could secure $50.4 million from the Asian Development Bank and $50 million from the World Bank Group as budget support.

Additionally, issuing international bonds could generate $25 million, while the IMF’s current loan program may provide Pakistan with $2 billion in tranches during the fiscal year.