Islamabad: The government of Pakistan is set to revise its construction sector relief package after the International Monetary Fund (IMF) raised objections, ARY News reported, citing informed sources.
The package—originally introduced by Prime Minister Shehbaz Sharif—was designed to stimulate growth in the construction industry and provide tax exemptions for property buyers. However, the IMF has reportedly categorized the initiative as a form of “amnesty,” expressing concerns over its potential economic impact and alignment with ongoing fiscal reforms.
In response, Federal Minister for Economic Affairs Ahad Cheema has been tasked with restructuring the proposal to address the IMF’s reservations. According to sources, the revised package is expected to be presented during the IMF review mission’s upcoming visit to Pakistan.
Key revisions under consideration include exempting non-filers from paying taxes on their first property purchase valued up to Rs 5 million and scrapping the 8% tax on property purchases for tax filers. Additionally, the task force has suggested removing the 3% federal excise duty on property transactions.
This development comes amid a broader IMF-led Governance and Corruption Diagnostic Assessment (GCDA), during which IMF experts have engaged with Pakistani institutions, including a meeting with the Auditor General to understand public sector audit procedures.
The government appears committed to striking a balance between incentivizing investment and maintaining fiscal transparency, in line with the IMF’s ongoing support program.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
