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The IMF blocked Pakistan’s plan to cut the 18% GST on contraceptives, citing revenue risks, delaying lower prices.
The IMF has blocked Pakistan’s attempt to eliminate the 18% GST on contraceptives, citing revenue concerns and enforcement risks, despite Prime Minister Shehbaz Sharif’s directive to improve access.
The move prevents immediate price reductions, keeping contraceptives costly in a country with a 2.55% annual population growth.
The IMF insists such tax changes can only be considered during the 2026-27 budget process, rejecting prior proposals to lower taxes on sanitary pads and baby diapers as well.
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El FMI bloqueó el plan de Pakistán de reducir el GST del 18% en los anticonceptivos, citando riesgos de ingresos, retrasando la reducción de precios.