Merged districts of ex-FATA, PATA: Govt to consult IMF for tax relief

ISLAMABAD: The federal government on Friday said it would consult the International Monetary Fund (IMF) on extending tax exemptions for the merged districts of the former FATA and PATA, assuring the opposition Pakistan Tehreek-e-Insaf (PTI) that the issue would be taken up with the lender.

Talking to reporters after a high-level meeting between government and opposition leaders at Parliament House, the adviser to the prime minister on political affairs Rana Sanaullah confirmed that Finance Minister Muhammad Aurangzeb had pledged to approach the IMF on the matter.

“The finance minister has assured the opposition PTI that he will seek an extension of these exemptions after consulting the IMF, and, God willing, will make efforts in this regard,” he added.

The meeting took place in the chamber of Finance Minister Aurangzeb and was attended by Minister for Kashmir Affairs and Gilgit-Baltistan Amir Muqam on behalf of the government. PTI leaders Asad Qaiser, Junaid Akbar and MNAs from the former FATA region represented the opposition.

Sanaullah said the matter was raised earlier in the day during a brief interaction in the National Assembly between Prime Minister Shehbaz Sharif and PTI lawmakers, during which the opposition members drew attention to the impending expiry of tax exemptions for the merged districts on June 30.

He added that the prime minister immediately directed him, Finance Minister Muhammad Aurangzeb and Amir Muqam to engage with the opposition, following which the meeting was held without delay and the issue was discussed in detail.

He noted that the merged districts – integrated into Khyber Pakhtunkhwa in 2018 – currently enjoy income tax exemptions on profits and gains from existing businesses, along with sales tax exemptions for certain categories such as retailers.

Expressing optimism, the adviser said the government hoped the exemptions would be extended after consultations with the IMF.

On political dialogue, Sanaullah said the government delegation had stressed that engagement remained “the foundation of democracy”.

He added that the prime minister had reiterated his offer for talks and a broader “Charter of Pakistan”, urging the opposition to respond positively.

“You can discuss any issue you want. The prime minister is willing to listen and engage on every subject,” he said, adding that PTI representatives had responded that internal consultations were ongoing and a decision would be taken shortly.

He further said the government appreciated the opposition’s support for a resolution passed unanimously in the National Assembly earlier in the day, praising the country’s leadership role in facilitating a US-Iran peace agreement.

Referring to PTI founding chairman Imran Khan, who is currently facing an eye ailment, Sanaullah said the ex-premier was receiving “the best available medical care in jail”.

He added that the former prime minister remained in judicial custody and that any release could only be decided by the courts.

Copyright Business Recorder, 2026