The IMF has refused to allow Pakistan to abolish the tax on contraceptives. While Pakistan must meet its revenue targets, raising the cost of essential health products undermines family planning, increases population pressures and ultimately drives up public expenditure on health and social services. Without family planning, maternal and child health outcomes deteriorate.
Abolishing this tax would not weaken fiscal discipline. Revenue neutrality can be achieved by expanding levies on luxury goods and tightening enforcement against large landowners and traders who remain outside the tax net. Redirecting taxation away from basic health needs and towards non-essential consumption is both fair and efficient. Protecting access to contraceptives is both a public health imperative and sound economic policy that strengthens long-term fiscal sustainability. I hope the IMF will look beyond the bottom line.
Syed Hussein El-Edroos
Islamabad
