Pakistan Removes Tax on Period Products Despite IMF Pressure to Raise Revenue

Pakistan's 2026-27 budget eliminated the 18% sales tax on sanitary pads and contraceptives—a revenue sacrifice under IMF fiscal consolidation demands. Finance Minister Muhammad Aurangzeb's reclassification treats menstrual products as essentials rather than luxury goods. The move signals that public-health access now competes with revenue targets, though its durability depends on consistent contraceptive coverage through implementation.