In a significant development ahead of the Federal Budget 2024-25, Finance Minister Muhammad Aurangzeb has successfully convinced the International Monetary Fund (IMF) not to impose taxes on pensioners, according to sources.

This decision emerged from virtual talks held today between Pakistan and the IMF team.

Sources reveal that the Federal Board of Revenue (FBR) had initially prepared tax proposals under the guidance of the IMF.

These proposals included discussions on implementing a uniform tax on both the business sector and the salaried class. The Pakistani team presented several suggestions aimed at equalizing tax burdens across these sectors during the virtual negotiations.

Both parties have agreed to continue discussions on the tax proposals in subsequent virtual meetings. The Pakistani delegation is expected to brief the Prime Minister on the outcomes of today’s negotiations with the IMF, sources added.