Pakistan has not persuaded the International Monetary Fund (IMF) to include the real estate sector in the tax net.
The report emerged during the fifth round of discussions, during which Pakistan seeks a new bailout to mitigate balance-of-payments issues.
The IMF has tentatively agreed to Pakistan’s proposal to raise taxes on real estate transactions for non-filers. Formalizing the sector requires mandating banking channels rather than cash for transactions. This will ensure that all real estate dealings, including in housing societies, are fully documented.
Additionally, the Federal Board of Revenue (FBR) will manage the registration of property agents and transactions. According to sources, the upcoming budget will introduce measures to eliminate undocumented real estate transactions. Plans are also in place to draft proposals for taxing property file transactions.
In the ongoing negotiations, the IMF has also pressed for increased electricity and gas prices and expressed concerns over the losses incurred by state-owned enterprises.
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