Dawn
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03:06 Dec 12, 2025
• Additional taxes, spending cuts planned to offset revenue shortfalls • Govt commits to raising federal excise duty on fertilisers, pesticides • FED to be introduced on sugary items; goods to be shifted to 18pc GST • Expenditure cuts pledged if National Tariff Policy leads to revenue losses ISLAMABAD: Having missed a total of 11 performance indicators under its IMF programme, the government has agreed to 11 new targets, including additional tax measures and expenditure cuts from early next month, to make up for rising revenue shortfalls and keep the $7 billion Extended Fund Facility (EFF) on track. Commitment to the new or revised structural benchmarks, together with completion of two “prior actions”, enabled the conclusion of a staff-level agreement on the second review of the EFF and its approval by the IMF Executive Board for the disbursement of about $1.2bn, reveal fresh documents released by the Fund on Thursday. The government confirmed at the outset that it estimated a shortfall from the underperforma...