Islamabad, June 18, 2025 – Prime Minister Shehbaz Sharif announced that the International Monetary Fund (IMF) has agreed to Pakistan’s decision to exempt the agriculture sector from taxation in the upcoming budget, reinforcing support for the country’s vital rural economy.
Speaking at a federal cabinet meeting in Islamabad on Wednesday, Sharif expressed appreciation for the IMF’s concurrence on the agriculture tax exemption. He detailed key budgetary measures, including a one percent tax on annual incomes between PKR 600,000 and PKR 1.2 million to maintain fiscal balance. Additionally, the government has approved a 10 percent salary hike for public sector employees to address inflation and enhance living standards.
The prime minister also highlighted a substantial increase in the Public Sector Development Program (PSDP) budget, now set at PKR 1,000 billion to drive infrastructure and economic growth. The budget allocates additional resources to the armed forces, emphasizing their critical role in national security.
Sharif commended a delegation led by Bilawal Bhutto for effectively representing Pakistan’s interests during recent diplomatic visits to the United States and Europe, showcasing the nation’s commitment to global cooperation and economic stability.
The announcement reflects Pakistan’s ongoing efforts to address economic challenges while securing IMF support for its fiscal policies, ensuring stability for key sectors like agriculture.
