Pakistan has decided to take the International Monetary Fund (IMF) in confidence in rising tensions with India.

According to sources, the Federal Board of Revenue (FBR) has also decided to give lectures with the IMF on a possible reduction in the super tax.

The move is aimed at preventing capital flights, as officials fear that continued high taxation can lead to investments against Dubai.

FBR sources said that super-tax related cases worth RS 200 billion is currently pending in different courts.

In 2022, to protect the public from taxation, the government imposed additional taxes on major industries. These included cement, steel, sugar, oil and gas, LNG terminal, fertilizer, bank, textile, car, chemical, beverages and tobacco sectors.

Currently, large industries are subject to a 10% super tax in addition to existing corporate taxes, bringing the total tax rate for these sectors to 39%.

Pakistan’s tax-to-BNP ratio has increased from 8.8% to 10.4%. Authorities aim to push this to 10.6% in June with a target of 11% set for the next financial year.