Pakistan, Oct. 17 -- The Government of Pakistan and the International Monetary Fund (IMF) are discussing possible tax increases on solar panels and internet services. These proposed hikes are part of "emergency tax measures" tied to the IMF's second review of Pakistan's economic reform program. Sources say these steps are aimed at securing extra revenue if the government fails to meet its mid-year fiscal targets.

Earlier, the IMF had suggested raising taxes on fertilizers and agricultural pesticides, but the government rejected that proposal due to its potential impact on farmers. As an alternative, authorities are now considering taxing fast-growing sectors like solar energy and digital connectivity. These measures would only be trigger...