The article critically examines Pakistan’s federal budget and its implications for securing the 24th IMF program, arguing that it unfairly burdens salaried employees and those already taxed heavily while neglecting the powerful untouchables and avoiding significant government expenditure reductions. The need for the IMF program is acknowledged to maintain Pakistan’s fragile solvency and avoid debt restructuring, but skepticism remains about whether this program will bring the necessary reforms to be the last one. Pakistan’s history with 23 IMF programs is highlighted, with previous programs failing due to unrealistic, front-loaded targets that didn’t account for the Federal Board of Revenue’s (FBR) capacity or political will. The 2024-25 budget follows this same flawed approach, deepening the tax base rather than broadening it, and employing revenue-extractive measures that favor short-term fixes over sustainable change. The article stresses that Pakistan needs to boost exports and attract foreign direct investment (FDI) to manage its external account but criticizes the budget for making exporters’ lives difficult and deterring foreign investors with high taxes and unpredictable fiscal policies. The imposition of high taxes on skilled talent may drive them to leave the country or shift to the informal sector, while the imposition of an 18 percent GST on packed dairy products will likely increase inflation. The budget also fails to address major recommendations for reducing the tax burden on the formal sector, such as phasing out supertax and restoring group taxation. Overall, the budget is deemed inequitable, unfair, and misaligned with the goals of » Read More…