The IMF has rejected Pakistan’s request to lower taxes on property transactions.
Reports indicate no agreement was reached on reducing the March 2025 targets or cutting taxes. The FBR’s proposal to reduce withholding tax by 2% was also denied, along with tax relief on tobacco and beverages.
Read more: IMF Reports Pakistan Facing Challenging Fiscal Situation
For a staff-level agreement, Pakistan must provide additional assurances, while provinces have been directed not to intervene in wheat procurement.
However, the IMF has agreed to incorporate climate finance into its funding facility, providing support under the Resilience and Sustainability Facility.
