The International Monetary Fund (IMF) has requested a repression of tax evasion in the real estate sector of Pakistan as negotiations for the release of a section of loans of $ 1 billion in Islamabad begin.
This demand is part of the ongoing discussions aimed at ensuring the next section of the loan program of $ 7 billion.
Pakistan has assured the IMF that it will activate the Real Estate Regulatory Authority (Rera) to address tax evasion in the sector.
As part of the plan, the authorities intend to take measures against the people involved in declaring false property values, with sanctions that include prison and fines.
Agents who do not register the properties could face fines of up to RS 500,000, while those who provide false information could receive a fine between RS 200,000 and RS 500,000.
The real estate regulatory authority will be empowered to impose prison sentences of up to three years.
The negotiations for the loan section will continue until March 15, 2025, and are divided into two phases: technical discussions in the first phase, followed by conversations at the policy level.
During this time, the IMF delegation is expected to meet with officials from the Ministry of Finance of Pakistan, the Federal Income Board (FBR), the Energy Division and the State Bank of Pakistan.
The IMF will also report on agricultural income taxes, real estate taxes and plans to take retailers to the fiscal network.
In addition, the IMF delegation will provide suggestions for the next fiscal year budget, and separate discussions will be made with Punjab, Sindh, Khyber-Pakhtunkhwa and Baluchistan representatives.
