The International Monetary Fund (IMF) has rejected Pakistan’s request to grant tax exemptions for foreign investment projects, Wednesday said that Express News cited Fuentes.
The Special Investment Facilitation Council (SIFC) had sought exemptions during detailed information to the IMF delegation, arguing that tax relief would help attract foreign investors. However, the global lender rejected the request, maintaining his position on fiscal discipline.
During the informative session, SIFC officials presented investment opportunities, government structures and infrastructure plans.
A key approach was the proposed rail project that links Chagai with Gwadar, aimed at facilitating the transport of minerals from the Reko Diq mine with the port city.
Pakistani officials urged the IMF to allow tax exemptions for this strategic initiative, citing its importance for economic growth.
The viability study for the railway line was carried out in collaboration with the Ministry of Finance and the Ministry of Railways. The authorities revealed that the possible investor nations have demanded state guarantees before committing funds.
However, according to the ongoing loan program, the Pakistani government cannot offer such guarantees for each investment.
Previously, the IMF has agreed to the government’s proposal to reduce electricity prices, and a final decision is expected next month.
The sources indicated that the fees of the electricity base could be reduced by RS1 to RS2 per unit, with the National Regulatory Authority of Electric Energy (NEPRA) and the Ministry of Energy now authorized to adjust the rates.
However, the IMF has expressed concern about delays in the privatization of distribution companies (disc). The IMF stated that the improvements in the electricity sector are unlikely without first addressing the performance of these companies.
