As stated on March 24, 2025, the Federal Board of Revenue’s (FBR) request to lower transaction taxes for the real estate industry has been formally denied by the International Monetary Fund (IMF). At first, there were hints that, with official approval, the IMF may consent to a 2% decrease in the withholding tax on real estate acquisitions beginning April 1, 2025. The IMF has recently made it clear, nevertheless, that it would not support a decrease in these transaction levies at this time.
The IMF declined to reduce tobacco and beverage tax rates and rejected the request for property tax reductions. The IMF and Pakistan are now negotiating a Staff Level Agreement (SLA), and this decision comes within those negotiations.
Pakistan must guarantee in writing that provincial governments won’t meddle in wheat procurement procedures as part of these negotiations.
Through the Resilience and Sustainability Facility (RSF), the IMF has indicated that it is willing to add climate money to the current $7 billion Extended Fund Facility (EFF).
Alongside Pakistan’s request for the release of the second tranche of money, this proposal, which has the potential to secure up to $1 billion for climate-related activities, will be submitted to the IMF Executive Board for approval.
With fewer working days due to Eid-ul-Fitr holidays, the FBR is anticipated to have a difficult time reaching its income collection goal of PKR 1,220 billion for March 2025.
The FBR suggests that the objectives for April and May be changed to reflect the PKR 60–80 billion shortfall that internal assessments indicate.