IMF advises Pakistan to phase out fuel subsidies, broaden tax base for medium-term sustainability

ISLAMABAD: Projecting Pakistan’s fiscal deficit at around 3.2 per cent of the gross domestic product (GDP) and a slightly declining primary surplus from 2.5pc, the International Monetary Fund (IMF) has advised phasing out fiscally draining fuel subsidies, addressing contingent liabilities and broadening the tax base for credible medium-term sustainability. In its twice-a-year Fiscal Monitor 2026, the IMF projected Pakistan’s revenue to have already peaked with a downward but stable outlook in th...