https://arab.news/zh7kk
- Islamabad secured $7 billion Extended Fund Facility last summer as part of economic recovery plan
- Local media widely reports IMF demanding action against tax evasion in Pakistan’s real estate sector
ISLAMABAD: A mission from the International Monetary Fund (IMF) arrived in Islamabad today, Monday, for the first review of a $7 billion bailout program, according to a Pakistani official and widespread reports in local media.
Islamabad secured the $7 billion Extended Fund Facility (EFF) last summer as part of an economic recovery plan.
Pakistan’s economy had stabilized and now needed to focus on export-led growth, the finance minister said last week as he confirmed the IMF delegation’s visit from March 3-14.
Pakistan’s consumer price index (CPI) inflation rate, maintaining a downward trend on Monday, hit a more than 9-year low at 1.51 percent year-on-year in February.
A Pakistani economic adviser told Arab News, requesting anonymity, that a nine-member mission led by Nathan Porter had landed in Pakistan to assess the country’s economic performance to determine the release of a $1.1 billion tranche over the following three weeks.
Top Pakistani news channel, ARY News, reported that the IMF was demanding action against tax evasion in Pakistan’s real estate sector.
“During the talks, the IMF pushed for action against those misdeclaring property values,” ARY reported, saying the government had assured the international lender it would activate the Real Estate Regulatory Authority.
“Strict penalties, including imprisonment and fines, will be imposed on individuals and agents who falsely declare property values … As per sources, failing to register could result in a fine of up to Rs500,000,” ARY added.
The Real Estate Regulatory Authority could be granted the power to impose up to three years of imprisonment and revoke the licenses of agents and fine them for providing false information:
“Misdeclaration in property transfers could lead to fines ranging from Rs500,000 to Rs 1 million,” ARY said.
Pakistan’s Dawn newspaper said the government “remains optimistic about a successful conclusion to the talks.”
“The performance review, in principle, is based on the first half of the current fiscal year — July 1 to Dec 31, 2024 — and while some shortcomings could be observed at that time, all those missing links have now been covered,” Dawn reported, quoting a Pakistani official.
The IMF team usually spends around two weeks reviewing fiscal reforms and policy.
Last week, a separate IMF team visited Pakistan to discuss around $1 billion in climate financing on top of the EFF. That disbursement will take place under the IMF’s Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.