The International Monetary Fund has not agreed to Pakistan’s proposed Rs115 billion real estate relief package.
Virtual talks between Pakistan’s economic team and the IMF are continuing over the proposed relief measures for the property sector.
The federal government announced the Rs115 billion package in its latest budget. The measures include lower withholding tax rates under Sections 236C and 236K.
Sources said the tax rate for sellers under Section 236C has been capped at 2.75 percent. They said the rate for buyers under Section 236K has been reduced to 1.25 percent.
Officials said further high-level talks with the IMF delegation are expected as both sides continue discussions on the proposed package.
Read: Pakistan IMF Real Estate Concerns Intensify Amid STR Gaps
The outcome of the talks is expected to shape the final tax policy for Pakistan’s property sector. This will occur in the upcoming fiscal framework.
The IMF had earlier urged Pakistan to tighten monitoring of suspicious financial transactions in the real estate sector.
The lender raised concerns over the low number of suspicious transaction reports from the real estate industry. Moreover, similar concerns were noted in other non-financial business and professional sectors.
Sources said the IMF also sought steps to curb trade-based money laundering. In addition, they want to close gaps in the exchange of beneficial ownership information.
