IMF pushes for ‘taxing real estate, agriculture’ in bid to raise revenue

The International Monetary Fund (IMF) recently granted a $3 billion loan to Pakistan; however, the rescue tranche is subject to a second review.

According to the journal, the Washington-based lender has now requested the government for a plan to levy taxes on the real estate and agricultural sectors.

The IMF, according to sources, has stated that the property and agriculture industries should be taxed in order to enhance the country’s revenue collection.

The IMF, according to the sources, believes Pakistan has the ability to grow revenue from these two areas.

If the IMF approves the Federal Bureau of Revenue (FBR) plan, the mini-budget will be released; nevertheless, the decision to levy taxes on the property and farm sectors will be made by the incoming government.

Furthermore, the sources stated that the World Bank would provide support in levying taxes on the two sectors.

It is worth noting that Pakistan recently got the first tranche of $1.2 billion from the IMF.

According to IMF officials, Pakistan would be required to implement the agreement’s conditions for economic stability.

Prime Minister Shehbaz Sharif has also promised IMF Managing Director Christine Lagarde that the accord would be followed in text and spirit.

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