Budget talks with IMF underway

Ahead of the federal budget for fiscal year 2025-26, Pakistan is holding talks with the International Monetary Fund (IMF) for setting budget targets and potential measures to achieve them.

Discussions will also focus on providing relief to the salaried class and industrial sector, among other key areas.

The government is considering providing relief to the salaried class in income tax, which will be subject to IMF's approval.

Among the proposals under review is a reduction in the income tax rate from 5 per cent to 2.5 per cent for individuals earning a monthly salary of Rs100,000.