IMF wants Pakistan to implement property and agriculture tax

The International Monetary Fund (IMF) has recently granted Pakistan a $3 billion loan, subject to certain conditions that require a second review.

According to reports, the Washington-based institution has asked the Pakistani government to devise a plan for implementing taxes on the real estate and agricultural sectors, with the aim of bolstering the country’s revenue generation.

The IMF perceives a potential for Pakistan to enhance its revenue through taxation of these two sectors.

Should the plan devised by the Federal Bureau of Revenue (FBR) gain approval from the IMF, it will result in the release of a mini-budget. However, the decision to impose taxes on the property and agriculture sectors ultimately rests with the new government.

Additionally, sources indicate that assistance will be sought from the World Bank to facilitate the taxation of these sectors.

It is worth noting that Pakistan recently received the initial disbursement of $1.2 billion from the IMF.

IMF officials emphasise that Pakistan must fulfill the conditions outlined in the agreement to achieve economic stability.

Prime Minister Shehbaz Sharif has also assured the IMF Managing Director of the government’s commitment to implementing the agreement in its entirety.