The federal government is preparing to introduce a new income tax on higher pensions in the upcoming financial year’s budget, sources told ProPakistani.

According to sources, the move comes in response to recommendations from the International Monetary Fund (IMF), which has urged Pakistan to impose a small income tax on individuals receiving pensions above Rs. 400,000 per month.

The proposed measure aims to promote fairness in the tax system, particularly for lower-income groups. Sources indicate that a 2.5 percent income tax may be levied on monthly pensions of Rs. 400,000 or more.