Islamabad, March 27, 2025 — Following Pakistan’s recent agreement with the International Monetary Fund (IMF) for a $1.3 billion loan to combat climate change, the government has announced plans to introduce new taxes, including a carbon levy starting in July. This is part of Pakistan’s efforts to meet IMF conditions for securing financial support.
In addition to the carbon tax, the government will increase water rates, reduce energy subsidies, and liberalize the automobile sector as part of the broader package to address economic challenges and meet the IMF’s demands. These measures aim to stabilize Pakistan’s economy while fostering environmental sustainability.
