The federal government is accelerating efforts to introduce new tax policies and plans to seek IMF approval for a carbon levy in the 2025-26 federal budget,
Initial discussions will begin next week during talks with the Washington-based lender. The IMF delegation, arriving today, will start negotiations on Monday to provide recommendations for the levy’s implementation.
Read more: Pakistan’s Tax Chief Discusses New Legislation to Boost Tax Collection
A technical team will engage with federal and provincial officials from February 24 to 28, focusing on green budgeting, climate spending tracking, and reporting. Talks will also include electric vehicles and subsidy frameworks.
Sources added that the IMF is likely to propose expanding green budgeting in the upcoming budget.
