The federal government is considering the introduction of a carbon tax in the budget for next fiscal year 2025-26.
According to the sources, the initial draft of the proposal will be discussed during the next negotiations with the delegation of the International Monetary Fund (IMF). The IMF is expected to provide recommendations on the implementation of the carbon tax.
The sources also revealed that a technical delegation of the IMF will maintain discussions with the federal and provincial authorities from February 24 to 28. These negotiations will cover green budgets, weather spending, labeling, monitoring and reporting mechanisms.
In addition, according to the Ministry of Finance, conversations will also focus on imposing a carbon tax, promoting electric vehicles and issues related to subsidies. The IMF delegation is also expected to propose measures to expand the green budget in the next financial plan.
It is noteworthy that the IMF delegation is scheduled to get to Pakistan tomorrow, with formal negotiations that will begin the next day.
