Karachi, February 2, 2025: The ruling Pakistan People’s Party (PPP) in Sindh has taken its Members of Provincial Assembly (MPAs) into confidence regarding the implementation of an agricultural tax in the province.
This move comes as the federal government pressures provinces to enhance tax revenues. Legislative preparations for the agricultural tax in Sindh have reportedly been finalized.
During a meeting held at the Chief Minister’s House, Sindh Chief Minister Murad Ali Shah briefed the PPP parliamentary party on the new legislation concerning the agricultural tax. He emphasized that the tax’s implementation is necessary to meet the conditions set by the International Monetary Fund (IMF). It was further clarified that Punjab and Khyber Pakhtunkhwa have already enacted similar legislation on agricultural taxation.
In September 2024, the IMF Executive Board approved a $7 billion, 37-month loan agreement for Pakistan, which required fiscal reforms to stabilize the economy. The approval led to an immediate $1 billion disbursement to Islamabad. Pakistan, which has faced repeated financial crises, has been part of 22 IMF bailout programs since 1958.
To move forward with the implementation, a Sindh cabinet meeting is scheduled for Monday at the CM’s House, where the legal draft of the agricultural tax will be reviewed and approved. Once cleared, the formal legislation will be presented in the Sindh Assembly.
According to sources, the agricultural tax in Sindh is expected to range between 15% and 45%, and similar taxes are expected to be implemented nationwide, including on associated livestock. PPP MPAs raised concerns with the party leadership, but the federal government is exerting significant pressure on Sindh to proceed with the taxation measures.
Punjab’s cabinet approved the agricultural tax on November 14, while Khyber Pakhtunkhwa followed suit on January 27. Now, Sindh is preparing to enact the tax law in line with federal directives.
