Islamabad, February 27, 2025 – The International Monetary Fund (IMF) has rejected Pakistan’s request for sales tax exemptions on electric vehicles (EVs) and their components, insisting that EV tax rates should follow standard taxation policies. While Pakistan’s Ministry of Industries and Production sought these exemptions to encourage EV adoption, the IMF opposed the move, citing concerns over fiscal discipline and revenue generation.
In addition to tax exemptions, the IMF delegation is engaging with Pakistani officials on climate financing strategies, including the development of 3,000 EV charging stations by 2030 and potential energy efficiency reforms. These discussions, set to continue until February 28, aim to balance Pakistan’s financial policies with global climate commitments while ensuring economic stability.
