Sugar deregulation and EV tax exemptions

Summary

• The Fund is seeking deregulation of the sugar sector, an end to tax exemptions for electric vehicles (EVs), limits on the government’s fuel subsidy scheme and reforms in the energy sector.
• For years, sugar policy has remained caught between government controls, provincial interests, farmers, millers and consumers.
• The government should therefore treat the IMF programme not simply as a condition to be completed, but as an opportunity to undertake reforms that successive governments have avoided.

AI Generated Summary

October 7, 2026

The latest demands from the International Monetary Fund (IMF) show once again that Pakistan’s economic problems cannot be solved through short-term fixes. The Fund is seeking deregulation of the sugar sector, an end to tax exemptions for electric vehicles (EVs), limits on the government’s fuel subsidy scheme and reforms in the energy sector. These demands may be difficult, but they also offer Pakistan an opportunity to correct long-standing weaknesses in economic policy.