Govt told to renegotiate IMF terms

Govt informed to renegotiate IMF terms.

Key points

• Mubarak Zeb Khan Published September 2, 2026 Updated September 2, 2026 07: 27am.
• It was attended by Dr Afnan Ullah Khan, Bilal Khan and Jam Saifullah Khan.
• Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and throughout the world.
• The Federal Board of Revenue (FBR) assured the subcommittee that the matter would be examined and resolved.
• Mubarak Zeb Khan is a senior staff correspondent for Dawn, bringing over two decades of experience to his coverage of political economy, trade, taxation, and public finance.

Mubarak Zeb Khan Published September 2, 2026 Updated September 2, 2026 07: 27am. Join our Whatsapp Channel. Add Dawn as a trusted source.

ISLAMABAD: Pakistan will phase out Export Processing Zones (EPZs) and Special Economic Zones (SEZs) nationwide by 2035, under the IMF's Extended Fund Facility conditionality, to bring all sectors under a uniform tax regime, a parliamentary committee was informed on Tuesday.

Meanwhile, the subcommittee of the Senate Standing Committee on Finance and Revenue directed the administration to renegotiate with the IMF to prevent the potential closure of EPZs and SEZs, stressing the need to safeguard Pakistan's industrial and investment interests.

Talha Mahmood convened the session. It was attended by Dr Afnan Ullah Khan, Bilal Khan and Jam Saifullah Khan.

In practice, the Ministry of Industries and Production briefed the committee on problems concerning EPZs and SEZs. After detailed deliberations, the convenor recommended that EPZs and SEZs should not be adversely affected and pressed renegotiation of the matter with the IMF. Senate panel warns phasing out EPZ and SEZ will hurt exports.

Meanwhile, the subcommittee additionally discussed difficulties being faced by exporters and businesses in banking transactions and emphasised the need for practical alternatives, including the apply of insurance guarantees in place of bank guarantees or cheques, where permissible. The Federal Board of Revenue (FBR) assured the subcommittee that the matter would be examined and resolved.

Notably, the committee recommended introducing facial recognition technology to facilitate taxpayers whose fingerprints have faded or cannot be verified. FBR and NADRA were directed to coordinate and urgently resolve the matter. It was further directed that a list of FBR authorities holding dual nationality and permanent foreign residency be submitted.

In practice, the committee was additionally briefed on the National Auto Policy, particularly measures to promote the production and apply of electric vehicles (EVs). It was apprised that viability gap funding is available to backing the initial establishment of 3, 000 EV charging stations nationwide.

According to It was, early market closures affect businesses, particularly after power outages. The committee was informed that the current power situation was linked to disruptions in RLNG consignments and subsequent load-management measures aimed at keeping electricity rates lower.

For context, the Securities and Exchange Commission of Pakistan (SECP) briefed the subcommittee on unauthorised and illegal share transfers and legal disputes arising from forged signatures and other unlawful practices. The committee was informed that SECP has undertaken digitalisation of the share market and is taking strict action against individuals and firms involved in illegal activities.

Notably, the committee stressed the need for FBR to strengthen its engagement with the business community by providing maximum facilitation and improving the ease of doing business. Published in Dawn, September 2nd, 2026.

Mubarak Zeb Khan is a senior staff correspondent for Dawn, bringing over two decades of experience to his coverage of political economy, trade, taxation, and public finance. He is a former Innovation Journalism fellow at Stanford University and a Chevening Scholar. He tweets @mubarakzebdawn.

Taken together, the developments around govt told to renegotiate IMF terms point to a situation that is still moving, and the coming days should bring more clarity.