Pakistan’s upcoming tax relief package is expected to remain tightly constrained under the International Monetary Fund (IMF) programme, with officials indicating that broad-based tax cuts for multiple sectors are unlikely.

Government sources said fiscal space remains limited due to IMF conditions, and any relief measures are now expected to be narrowly focused, primarily targeting salaried individuals in middle-income brackets.

The Federal Board of Revenue (FBR) has submitted a set of proposed adjustments to the prime minister for consideration. These include possible reductions in income tax rates for salaried earners in the Rs200,000–Rs300,000 monthly income range, covering an estimated 550,000 taxpayers.

Additional options under review include adjustments to higher salary slabs, including revisions to tax thresholds and rates for top-income groups. However, officials said any significant relief beyond salaried individuals would require IMF approval and is constrained by overall budget limits.

Proposals such as reductions in corporate tax rates, super tax, dividend withholding tax, and export-related levies are also under consideration, but officials cautioned that larger concessions in these areas may not be feasible under current fiscal restrictions.

The IMF has also reportedly expressed concern over wider tax reductions, emphasizing that Pakistan’s growth targets must remain aligned with fiscal stability conditions under the programme.

Final decisions on the relief package are expected after consultations with the IMF are completed in the coming days.