IMF pushes for 'taxing real estate, agriculture' in bid to raise revenue

• IMF believes Pakistan can increase revenue from two sectors.
• Decision to impose taxes will have to be taken by new govt.
• Assistance to be taken from WB to levy taxes, say sources.

ISLAMABAD: The International Monetary Fund (IMF) has recently approved a $3 billion loan for Pakistan; however, the bailout tranche comes with conditions for a second review, The News reported Monday.

Now, the Washington-based lender has asked the government for a plan to impose taxes on the real estate and agricultural sectors, the publication added, citing sources.

According to the sources, the IMF has said that the property and agriculture sectors should be taxed to increase the country's revenue generation. 

The sources added the IMF believes Pakistan has the potential to increase revenue from these two sectors.

If the Federal Bureau of Revenue (FBR) plan is approved by the IMF, the mini-budget will be released; however, the decision to impose taxes on the property sector and agriculture sector will have to be taken by the new government.

Moreover, the sources said that assistance would be taken from the World Bank to levy taxes on the two sectors. 

It is pertinent to mention that a few days ago, Pakistan received the first installment of $1.2 billion from the IMF. 

In this regard, IMF officials say that Pakistan will have to implement the conditions of the agreement for economic stability. 

Prime Minister Shehbaz Sharif has also assured IMF MD that agreement would be implemented in letter and spirit.