Despite Pakistan being among the countries with the highest population-growth rates and despite clear directives issued by Prime Minister Shehbaz Sharif, the International Monetary Fund has refused to allow the Federal Board of Revenue to immediately abolish the 18% General Sales Tax on contraceptives, including condoms.
According to sources, the FBR raised the Prime Minister’s concern during a virtual meeting and requested an immediate withdrawal of GST on condoms. However, the IMF dismissed the proposal, stating that such matters cannot be entertained during ongoing discussions and can only be reviewed in the upcoming budget cycle.
Senior government officials said the IMF’s refusal means there is no immediate possibility of reducing the prices of condoms in Pakistan, even as the country struggles with rapid population growth. They added that this rejection has effectively blocked the implementation of the directive issued by the Prime Minister in August 2025, which emphasized making population-control products cheaper and more widely available across the country.
Sources further revealed that the Prime Minister had instructed the FBR in August 2025 to formally take up the matter with the IMF. However, despite months of efforts and repeated engagements, no meaningful progress could be achieved.
