IMF Rejects Pakistan's GST Cut on Condoms, Diapers Amid Bailout Crisis

World
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Moneycontrol•18-12-2025, 20:52
IMF Rejects Pakistan's GST Cut on Condoms, Diapers Amid Bailout Crisis
- •IMF rejected Pakistan's request to reduce the 18% GST on contraceptives, sanitary pads, and baby diapers.
- •The rejection stems from strict IMF bailout conditions, revenue targets, and refusal to grant exemptions mid-fiscal year.
- •Pakistan faces high population growth (2.55%) and inflation, making essential contraceptives expensive.
- •The FBR's proposal for GST relief on contraceptives would have resulted in a revenue loss of 400-600 million Pakistani rupees.
- •Pakistan is accelerating the sale of its national airline, PIA, to meet IMF loan conditions and reduce financial burden.
Why It Matters: IMF's strict conditions keep essential goods expensive in Pakistan, impacting population control and public health.
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