Archive · 19 Dec 2025
IMF Rejects Pakistan's Plea to Cut 18% Tax on Condoms
Pakistan's Prime Minister Shehbaz Sharif asked the International Monetary Fund (IMF) to remove an 18% tax on condoms and other birth control supplies.
The IMF said no because it wants Pakistan to keep the tax to help the country's economy.
The tax makes these items more expensive, which could make it harder for people to plan their families.
The government is worried about the growing population and the strain it puts on schools, hospitals, and other public services.
The IMF thinks that removing the tax would make it harder for Pakistan to pay back its debts.
Now, the government will have to find other ways to help people get birth control.
Pakistan's Prime Minister Shehbaz Sharif proposed removing the 18% GST on condoms and contraceptives to make family planning more accessible.
The IMF rejected the proposal, insisting on maintaining the agreed-upon tax framework to ensure fiscal consolidation and revenue targets.
Pakistan is facing one of the highest population growth rates in the region, which strains public infrastructure, education, and healthcare.
The 18% GST on contraceptives makes them unaffordable for many low-income families, potentially undermining decades of demographic management efforts.
The government will now have to find alternative, likely more expensive, ways to subsidize family planning through direct provincial health budgets.
- Who
- Pakistan's government and the International Monetary Fund (IMF)
- What
- IMF rejected Pakistan's request to remove 18% GST on condoms and contraceptives
- When
- December 18, 2025
- Where
- Pakistan
- Why
- IMF insists on maintaining the agreed-upon tax framework to ensure fiscal consolidation and revenue targets
- Country
- Pakistan
- Tax Rate
- 18% GST
- IMF Program
- Extended Fund Facility (EFF)
- Bailout Amount
- Seven billion dollars
- Population Growth
- One of the highest in the region
- Government Proposal
- Removal of 18% GST on condoms and contraceptives
- IMF Stance
- Rejected the proposal to maintain fiscal consolidation
- Alternative Government Plan
- Subsidize family planning through provincial health budgets
