ISLAMABAD – Families are growing faster than ever in world’s fifth populous nation, as a pack of condoms remains out of reach for many. The government had a plan to change that by cutting the 18 percent GST to make birth control affordable and accessible nationwide.
The government’s ambitious plan to make contraceptives more affordable has hit an unexpected wall after International Monetary Fund (IMF) refused to allow the government to remove 18 percent General Sales Tax (GST) on condoms and other birth control products ahead of next federal budget. This comes despite urgent warnings from PM Shehbaz Sharif about the country’s rapidly growing population, which is expanding at a staggering 2.55 percent annually.
The global lender turned down Federal Board of Revenue’s (FBR) proposal to immediately scrap GST on contraceptives, stopping PM August 2025 directive aimed at making family planning products cheaper and more accessible nationwide. As a result, prices will remain high, keeping contraception out of reach for many Pakistanis amid mounting demographic pressures.
The report revealed that PM ordered FBR to raise issue with IMF months ago. However, despite repeated attempts, Pakistani authorities failed to secure approval. In a recent meeting at Prime Minister’s Office, officials confirmed that the IMF had refused consent, effectively blocking the government’s plans.
Officials formally contacted IMF headquarters in Washington, DC, via email, estimating that removing Sales Tax on contraceptives would reduce revenue by Rs400–600 million. IMF’s Fiscal Affairs Department showed little interest in supporting the measure. A subsequent virtual meeting saw Pakistani officials reiterate the prime minister’s request for immediate tax relief, but IMF staff rejected the plea, citing difficulty of granting tax relief mid-fiscal year.
Revenue officials proposed cutting GST on sanitary pads and baby diapers, but these efforts were firmly blocked by IMF due to revenue implications. Baby diapers alone have tax base estimated at nearly Rs100 billion. IMF officials further warned that selectively cutting taxes on items like contraceptives or diapers could complicate enforcement for the FBR and potentially encourage smuggling.
With IMF standing firm, Pakistan’s fight to curb population growth through affordable family planning is now in limbo, raising urgent questions about the country’s ability to manage one of the world’s fastest-growing populations.
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