According to a report by The News on Monday, the International Monetary Fund (IMF) has recently given its approval for a $3 billion loan to Pakistan. However, this bailout tranche comes with certain conditions that require a second review.
The IMF has requested the Pakistani government to present a plan for implementing taxes on the real estate and agricultural sectors, as stated by sources mentioned in the publication.
The IMF believes that taxing the property and agriculture sectors would contribute to an increase in the country’s revenue generation. These sources also mentioned that the IMF sees potential for Pakistan to enhance its revenue through these sectors.
If the plan proposed by the Federal Bureau of Revenue (FBR) is accepted by the IMF, a mini-budget will be released. Nonetheless, the decision to impose taxes on the property and agriculture sectors will ultimately be made by the new government.
Furthermore, it has been stated by the sources that assistance will be sought from the World Bank to facilitate the implementation of taxes on these two sectors.
It is worth mentioning that Pakistan recently received the first installment of $1.2 billion from the IMF. In light of this, IMF officials have emphasized that Pakistan must fulfill the conditions outlined in the agreement in order to achieve economic stability.
Prime Minister Shehbaz Sharif has also assured the Managing Director of the IMF that the agreement will be implemented in its entirety and with utmost commitment.