The International Monetary Fund (IMF) called for a repression of tax evasion in the real estate sector of Pakistan while negotiations begin for the release of a $ 1 billion loan tranche in Islamabad.
This request is part of the current discussions aimed at ensuring the next tranche of the 7 billion dollars loan program.
Pakistan assured the IMF to activate the Real Estate Regulatory Authority (IRA) to combat tax evasion in the sector.
In the context of the plan, the authorities intend to take measures against the persons involved in the declaration of false properties, with sanctions, in particular imprisonment and fines.
Agents who fail to record properties could incur fines of up to 500,000 rupees, while that which provides false information could be sentenced to a fine between 200,000 rupees and 500,000 rupees.
The real estate regulatory authority will be empowered to impose prison terms of up to three years.
Negotiations for the loan tranche will continue until March 15, 2025 and are divided into two phases: technical discussions in the first phase, followed by talks in terms of politics.
Meanwhile, the IMF delegation is expected to meet officials from the Pakistan Ministry of Finance, the Federal Board of Return (FBR), the electricity division and the State Bank of Pakistan.
The IMF will also be informed of agricultural income taxes, tax on the goods sector and plans to bring retailers into the tax net.
In addition, the IMF delegation will provide suggestions for the next exercise budget, and separate discussions will take place with representatives of Punjab, Sindh, Khyber-Pakhtunkhwa and Balutchistan.
