The International Monetary Fund (IMF) has urged Pakistan to crack down on tax evasion in the real estate sector as negotiations continue for the release of a $1 billion loan tranche.
As part of the discussions under the $7 billion loan program, Pakistan has assured the IMF that it will activate the Real Estate Regulatory Authority (RERA) to enforce stricter tax regulations. Authorities plan to penalize individuals involved in undervaluing properties, with fines ranging from Rs 200,000 to Rs 500,000 and prison sentences of up to three years.
The negotiations, set to run until March 15, 2025, include technical discussions followed by policy-level talks. The IMF will meet officials from the Ministry of Finance, FBR, Power Division, and the State Bank of Pakistan to review tax reforms, including property taxation and measures to bring retailers into the tax net. The delegation will also provide recommendations for the upcoming
