The International Monetary Fund (IMF) refused Pakistan’s request to reduce property transactions, sources familiar with negotiations said on Monday.
The rejection comes when Islamabad is struggling to fulfill the conditions to obtain an agreement at the level of staff, which will open the way for financial aid.
According to sources, the IMF also refused to reduce the reservoir of 2% and rejected Pakistan’s request for tax relief on tobacco and drinks.
In addition, there was no agreement on the relaxation of Pakistan’s income objectives for March 2025, which makes it more difficult for the government to respect its tax commitments within the framework of the IMF program.
Pakistan will have to provide additional guarantees to finalize the staff agreement, sources said. The IMF also set a condition preventing the provinces from intervening in the supply of wheat.
Meanwhile, the world lender has shown his desire to incorporate climate funding into the program. As part of the installation of resilience and sustainability, Pakistan will be offered financial assistance to the initiatives related to the climate.
The main requests for tax relief refused, Pakistan faces additional pressure to implement difficult tax measures. The government must now provide additional insurance to unlock the next IMF funding section.
