Pakistan 'halts' relief for construction sector amid IMF concerns

ISLAMABAD: The implementation of relief package for Pakistan’s construction sector has been halted amid objections raised by the International Monetary Fund (IMF), ARY News reported citing sources.

According to sources, the package, aimed at boosting the construction sector, was introduced by Prime Minister Shehbaz Sharif.

Sources revealed that IMF has termed the relief package as an “amnesty” and has expressed concerns over its potential impact on the country’s economy. In light of these objections, Federal Minister for Economic Affairs Ahad Cheema has been tasked with revising the package.

The revised package is expected to be presented to the IMF review mission during their upcoming visit to Pakistan. The mission will receive a briefing on the proposed revisions, which include exempting non-filers from paying taxes on their first property purchase worth up to Rs 5 million, sources added.

Additionally, the task force has recommended eliminating the 8% tax on property purchases for filers. Other proposed measures include abolishing the 3% federal excise duty on property purchases.

On February 12, a visiting delegation of IMF experts called on the Auditor General of Pakistan to get briefing over the audit procedure and transparency in the public sector.

A mission of the International Monetary Fund (IMF) is on the visit of Pakistan to conduct a Governance and Corruption Diagnostic Assessment (GCDA), the Ministry of Finance earlier said in a statement.

The IMF delegation was briefed that the Parliament has been the major forum of audit and accountability in public sector and according to a parliamentary tradition, the opposition entrusted to audit the government institutions.

“The Leader of Opposition or his nominee used to be the head of the Public Accounts Committee of the Parliament,” the delegation was informed.

Also read: Pakistan restructures FBR on IMF demand