Pakistan, May 12 -- The Government of Pakistan has decided to formally approach the International Monetary Fund (IMF) to request flexibility on the super tax imposed on major industries. This move comes amid growing concerns from the business community over the heavy tax burden, which they warn could drive investment out of the country, especially to the UAE.

According to Federal Board of Revenue (FBR) sources, the super tax was introduced in 2022 to protect low-income groups from additional tax pressure. It targeted large-scale industries, including cement, steel, sugar, oil and gas, and LNG terminals. The additional 10% tax increased the effective tax rate on these sectors to nearly 39%, one of the highest in the region.

The FBR is co...