IMF Bailout Shock: Pakistan Denied GST Relief on Condoms & Diapers
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Pakistan has suffered another setback under the IMF bailout programme as the International Monetary Fund has rejected the Shehbaz Sharif government’s request to reduce GST on condoms and other contraceptives. Despite Pakistan’s high inflation and one of the fastest population growth rates in the world, the IMF refused to allow tax relief in the middle of the fiscal year.
According to reports, Pakistan’s Federal Board of Revenue (FBR) approached the IMF headquarters in Washington via email, seeking GST relief on contraceptives, sanitary pads, and baby diapers, estimating a revenue impact of PKR 400–600 million. However, the IMF firmly declined, stating that Pakistan must meet its revised revenue targets under the $7 billion IMF bailout package.
This decision leaves condoms expensive in Pakistan, where an 18% GST continues to apply, raising concerns over public health, family planning, and economic pressure on citizens. With 11 new IMF conditions imposed recently, Pakistan now faces 64 IMF compliance requirements in just 18 months, highlighting the growing tension between fiscal discipline and social welfare.
IMF Bailout Shock: Pakistan Denied GST Relief on Condoms & Diapers
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