The International Monetary Fund (IMF) has lifted its objection to Pakistan’s tax relief on imported sugar, following successful negotiations by the government. The relief, detailed in a FBR notification, reduces the sales tax from 18% to 0.25% and is not part of the national budget or a subsidy program, a stance Pakistan clarified to address IMF concerns over fiscal discipline amid a sugar shortage, the sources within the finance ministry added. Pakistan plans to import 100,000 tons of sugar in the first phase, costing $56.7 million, with a tax exemption of Rs 1.85 billion.
