islamabad dec 3 reuters  pakistan will end most exemptions on sales tax so that all sectors pay a uniform 17 as part of a package of belt tightening measures aimed at securing approval for a 1 billion tranche of imf funding officials said on friday as well as withdrawing sales tax exemptions worth around 300 billion rupees 170 billion a year officials said a supplementary budget next week would also cut development spending the measures will add further pressure on consumers already squeezed by galloping inflation and a sliding currency the imf agreed last month to revive a stalled 6 billion funding programme but demanded further budgetary tightening from pakistan before the next tranche worth some 1 billion could be approved read more government finance adviser shaukat tarin said the imf had demanded that the sales tax become an acrosstheboard sales tax of 17 which currently is the highest level but only applicable to some goods and services however he said the government would be working to provide relief to lower income workers and others hit by the tax the imf is not saying that you dont give relief to people but theyre saying dont distort the tax ratio he told reporters surging food and energy prices have put prime minister imran khan under increasing pressure over recent months as household bills have caused growing anger among the middle classes which had provided his governments main support base pakistan had been in talks with the imf for several months to seek a relaxation in the terms and conditions of a bailout package agreed more than two years ago to shore up its fragile public finances the completion of the imf review pending since earlier this year would make available 750 million in imf special drawing rights or around 1 billion bringing total disbursements so far to about 3 billion pakistan entered the 6 billion 39month funding programme with the imf in july 2019 but the funding stalled earlier this year due to issues over the required reforms pakistans economy has been under heavy pressure with a historic decline in the rupee currency inflation which reached 115 in november a widening current account deficit and dwindling foreign reserves the central bank raised its benchmark interest rate by 150 basis points last month to 875 to counter inflationary pressures and preserve stability with growth 1  1765000 pakistani rupees