Karachi, June 1, 2025 – The Sindh government has firmly opposed the latest demand by the International Monetary Fund (IMF) to impose more taxes on the agricultural sector, warning that such measures could severely harm farmers and threaten the country’s food security.
Speaking on behalf of the provincial government, Sindh Minister for Agriculture Muhammad Baksh Mahar expressed deep concerns over the IMF’s proposal to introduce an 18% General Sales Tax (GST) and raise the Federal Excise Duty (FED) on essential agricultural inputs such as fertilizers, pesticides, and farming machinery.
Mahar described the IMF’s demand as “unjust and anti-farmer,” arguing that such a move would drastically increase the cost of agricultural production. “These taxes would be a direct blow to our already struggling farmers, especially in Sindh, where the agriculture sector is battling climate change, water shortages, and declining market prices,” he said.
He warned that the imposition of new taxes on agricultural goods and services would not only burden farmers but also worsen inflation across the country by raising food prices. Mahar stressed that agricultural sustainability is essential for economic stability and food security, and that the sector requires support and facilitation—not further financial pressure.
The Sindh minister urged the federal government to engage with the IMF and advocate for a more balanced and farmer-friendly approach. “Instead of adding more taxes, we should be offering relief and incentives to the agricultural sector to boost productivity and ensure food availability for all,” he added.
He further stated that the proposal had sparked unrest and anxiety among farmers in Sindh and across Pakistan. “There is growing frustration among agricultural communities, and we stand in solidarity with them in opposing these unjustified taxes,” Mahar affirmed.
The Sindh government reiterated its commitment to defending the interests of farmers and protecting the agricultural sector from international policies that fail to consider local realities. It called upon all stakeholders to prioritize the needs of the people over external financial pressures.