Islamabad (TDI): The International Monetary Fund has turned down Pakistan’s request to reduce taxes on property transactions.
The rejection comes as Pakistan struggles to meet the conditions for securing a staff-level deal, which would pave the way for further financial help.
The IMF also refused to lower withholding tax by 2 percent and rejected Islamabad’s request for tax relief on tobacco and beverages, The Express Tribune reported.
Moreover, there was no agreement on relaxing Pakistan’s revenue targets for March 2025, making it difficult for the government to fulfill its fiscal commitments under the IMF program.
Islamabad will be required to provide additional guarantees to finalize the staff-level deal.
The global lending agency has also set a condition preventing provinces from intervening in wheat procurement.
Read More: No Mini-Budget as IMF Satisfied with Pakistan’s Economic Measures
Meanwhile, IMF has shown readiness to incorporate climate finance into the program.
Under the Resilience and Sustainability Facility, Pakistan will be offered financial help for climate-related initiatives.
Read More: Pakistan, IMF Begin Talks on $7b Bailout Review
With important tax relief requests denied, Islamabad faces further pressure to implement tough fiscal measures.
The government must now provide additional assurances to secure the next tranche of IMF funding.
