IMF 'resists' Pakistan’s push for real estate relief

ISLAMABAD: The International Monetary Fund (IMF) has not agreed to Pakistan’s push for relief to the real estate sector, ARY News reported on Wednesday, citing sources.

As per details, virtual discussions between Pakistan’s economic team and the International Monetary Fund (IMF) on providing relief to the real estate sector are currently underway.

Sources said the IMF has so far not agreed to grant relief to the property sector during the ongoing negotiations.

The government, in its latest budget, announced relief measures worth Rs115 billion for the real estate sector. These include reductions in withholding tax rates under Sections 236C and 236K.

Under Section 236C, the tax rate on sellers has reportedly been capped at 2.75 per cent, while under Section 236K, the tax rate on buyers has been reduced to 1.25 per cent, according to sources.

Officials said discussions with the IMF over the proposed relief package are ongoing through virtual meetings, and further high-level talks with the IMF delegation are expected in the coming phase.

The outcome of these negotiations is likely to play a key role in determining the final shape of tax policy for the property sector in the upcoming fiscal framework.

IMF ‘urges’ Pakistan for strict monitoring of transactions in real estate sector

Last month, the International Monetary Fund (IMF) urged Pakistan to strengthen monitoring mechanisms for suspicious financial transactions in the real estate sector amid concerns over money laundering and weak regulatory oversight, sources told ARY News.

According to sources, the IMF expressed concern over the low number of suspicious transaction reports being filed from the real estate industry and other non-financial business and professional sectors.

The global lender also called for urgent measures to curb the growing trend of trade-based money laundering and to address loopholes in the exchange of beneficial ownership information.