The International Monetary Fund (IMF) has demanded a crackdown on tax evasion in Pakistan’s real estate sector, as talks to unlock $1bln loan tranche get underway in Islamabad, ARY News reported on Monday, citing sources.
The nine-member mission led by Nathan Porter landed in Pakistan today to assess Pakistan’s economic performance to determine the release of the next $1 billion tranche.
As per details with ARY News by sources, the talks got underway between Pakistan and IMF to $1 bln loan tranche under $7 bln loan program. During the talks, the IMF pushed for action against those misdeclaring property values.
As part of the proposed reforms, the Pakistan government assured the IMF of activating the Real Estate Regulatory Authority.
According to sources, 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.
The Real Estate Regulatory Authority may be granted the power to impose up to three years of imprisonment. The authority could revoke licenses of agents providing false information.
Real estate agents may be fined between Rs200,000 to Rs500,000 for providing incorrect details, the sources said.
Read more: IMF delegation in Pakistan for economic review
Misdeclaration in property transfers could lead to fines ranging from Rs500,000 to Rs 1 million.
The new regulations aim to enhance transparency in the real estate sector and prevent financial fraud.
The nine-member mission led by Nathan Porter will stay about two weeks and assess Pakistan’s economic performance to determine the release of the next $1 billion tranche.
The IMF team held talks with the Pakistani officials over climate finance last month and reportedly opposed sales tax concession in local sale of the parts of electric vehicles, the sources shared. The IMF officials suggested routine tax rate in the new electric vehicles policy.
