Money and Periods: Pakistan’s Tax Change and What It Means

Pakistan’s 2026–27 federal budget proposed the complete removal of the 18% sales tax on sanitary pads and similar menstrual hygiene products, a measure announced by the finance minister in June 2026 and included among broader tax reliefs. The change was prompted in part by legal challenges and a public campaign led by young activists and lawyers, who had argued that treating menstrual items as luxury goods penalised women for a natural bodily function. Earlier attempts to lift the levy mid‑year were blocked by international creditors, which left campaigners focused on the budget process.

Use of commercially manufactured menstrual materials remains low: about 12% of women and girls report using such products, while most rely on reusable cloth or other alternatives. Development agencies have estimated that combined taxes, import duties and levies can inflate the retail price of pads by roughly 40%, and monitoring work has shown that Pakistan lacks a national menstrual health policy and that many schools still do not provide adequate water and sanitation facilities.

Advocates have welcomed the tax change but cautioned that the poorest families may continue to struggle because import duties, manufacturing costs and weak distribution keep prices high; in addition, safe use requires private washing and disposal facilities that are often absent. If the budget measure is enacted and paired with lower import duties, targeted subsidies or free supplies for low‑income communities, then access could improve more rapidly.

For now, the move is a formal step that removes one financial barrier, yet multiple legal, logistical and public‑health challenges will determine whether more women can buy or use safe menstrual products.