The International Monetary Fund (International Monetary Fund) has urged Pakistan to bring the agriculture sector into the formal tax net as part of broader efforts to increase national revenue. Provincial governments are expected to take the lead in implementing agriculture income taxation, a sector that has largely remained under-taxed despite its significant share in the economy.

While the move could strengthen fiscal collection and widen the tax base, it is also likely to face pushback from farmers already dealing with high input costs and economic pressure.

In parallel, the federal government has launched a support initiative for small landholders through the Pakistan Asaan Khidmat App. Under this scheme, farmers owning less than 12 acres of land are being provided a subsidy of Rs1,500 per acre to help offset rising production costs and energy-related challenges.

Authorities indicate that such targeted relief measures may continue depending on economic conditions, aiming to protect small farmers while gradually expanding the revenue base. The overall policy direction reflects a balance between fiscal reform and agricultural support.