- The budget for the following financial year must be finalized after the IMF consultations.
- The IMF agree to remove federal excise duties on the first sale of properties
- Pakistan may lose climate financing if the transaction conditions not respected.
Islamabad: The federal government will present the budget for the year 2025-2026 after consultations with the International Monetary Fund (IMF), sources said.
The sources of the Ministry of Finance said Geo News Another IMF delegation on Thursday should soon visit Pakistan for discussions.
According to officials, consultations in person and online with the IMF will continue before finalizing the budget, which should be presented the first week of June.
The discussions will cover the main economic policies and the income measures necessary to align with the recommendations of the IMF.
Sources also revealed that the IMF had agreed to provide limited lounges in the real estate sector. Under the new budget, the right of federal excise on the first sale and the purchase of goods will be deleted, while existing restraint and tax rates will remain unchanged.
Likewise, the tax rate on properties sellers will also remain the same.
In accordance with the current IMF agreement, the lender’s board of directors should approve the recommendations at the end of May or June, the date on which the budget will already be prepared.
However, if Pakistan does not comply with the agreement, it can lose access to climate -related financial aid.
The IMF board of directors to examine the Pakistan program will only be provided after the finalization of budget details. Due to the next spring meetings in April, the Council will not discuss the Pakistan program during this period.
The development follows the staff level agreement (SLA) between the lender based in Washington and the Pakistani authorities concerning the first examination of the rescue program in the course of 37 months.
The agreement, awaiting the approval of the IMF executive committee, will see Islamabad obtain access to approximately $ 1 billion under prolonged fund (EFF), bearing total disbursements under the program to around $ 2 billion.