Pakistan, June 1 -- Ahead of the 2026-27 federal budget, the International Monetary Fund (IMF) has asked Pakistan to increase the standard General Sales Tax (GST) rate by one percentage point, from 18% to 19%.

However, Pakistani authorities have so far resisted it tooth and nail, arguing that it would further hike inflationary pressure, The News reported. According to rough estimates, if the IMF convinces the budget makers, the GST will have a revenue impact of Rs250 to Rs300 billion.

The IMF has proposed raising the GST rate by 1% after witnessing a shortfall in the revised tax collection target for the outgoing fiscal year. The FBR might go close to the Rs13 trillion mark, but at the moment, it seems hard that the tax machinery would ...