IMF Demands Tax Expansion, Digital Payments and Governance Reforms

Pakistan and the IMF have agreed on a broad reform agenda for the upcoming fiscal year 2026-27 budget, which includes digitalisation, governance, subsidy reforms and reduction of government intervention in the market.

According to the agreement, all payments at the federal and provincial levels will be fully digitalised by June 2027 to increase transparency.

The government has also assured that the incentives of SEZs, export processing zones and special technology zones will be phased out to provide equal opportunities for all sectors.

The report further states that government intervention in the wheat and sugar markets will be reduced, while strategic stocks will be purchased by the private sector at international prices.

According to experts, these reforms can lead Pakistan’s economy towards long-term stability; however, there is a risk of increasing pressure on the public and business sectors in the short term.