The federal government is considering the introduction of a carbon tax in the budget for the next financial year 2025-26.
According to sources, the initial project of the proposal will be discussed during the upcoming negotiations with the delegation of the International Monetary Fund (IMF). The IMF should provide recommendations on the implementation of the carbon tax.
Sources have also revealed that a technical delegation of the IMF will hold discussions with the federal and provincial authorities from February 24 to 28. These negotiations will cover the mechanisms of green budgeting, climatic expenditure, marking, follow -up and report.
In addition, according to the Ministry of Finance, talks will also focus on the taxation of a carbon tax, the promotion of electric vehicles and questions related to subsidies. The IMF delegation should also offer measures to extend green budgeting in the next financial plan.
It should be noted that the IMF delegation is expected to arrive in Pakistan tomorrow, with official negotiations that should start the next day.
