The International Monetary Fund (IMF) has reportedly agreed to withdraw the proposed increase in sales tax on stationery items from 10 percent to 18 percent, following the intervention of Prime Minister Shehbaz Sharif.
According to sources, the decision came after the government formally requested the IMF to reconsider the proposed tax hike in the upcoming federal budget for 2026–27. The move is expected to provide significant relief to students, educational institutions, and households across Pakistan.
Stationery products such as notebooks, pens, pencils, erasers, and geometry boxes are essential educational supplies purchased by millions of families at the start of each academic year. The proposed tax increase had raised concerns that it would further escalate the cost of education at a time when households are already facing inflationary pressure and limited growth in real incomes.
Pakistan’s stationery sector is largely dependent on imports, with a substantial share of finished goods and raw materials sourced from China and other regional markets. Industry estimates indicate that the domestic stationery and office supplies market is worth tens of billions of rupees annually, catering not only to students but also to offices, universities, and government institutions across the country.
