ISLAMABAD: The International Monetary Fund (IMF) has called for a crackdown on tax evasion in Pakistan’s real estate sector as discussions for the release of a $1 billion loan tranche under the $7 billion program begin.
A nine-member IMF delegation, led by Nathan Porter, arrived in Pakistan to assess economic performance. During talks, the IMF pushed for action against property value misdeclaration and stressed the need for strict penalties.
The Pakistan government assured the IMF of activating the Real Estate Regulatory Authority, which will impose heavy fines and jail terms on those misdeclaring property values. Sources indicate that failure to register properties could result in fines of up to Rs500,000, while real estate agents providing false information may face fines between Rs200,000 and Rs500,000. Additionally, misdeclaration in property transfers could lead to penalties ranging from Rs500,000 to Rs1 million.
The authority may also be granted the power to impose up to three years of imprisonment and revoke the licenses of agents involved in fraudulent activities. These measures aim to enhance transparency and curb financial fraud in the real estate sector.
The IMF delegation will stay for two weeks to evaluate Pakistan’s economic policies. Last month, IMF officials also discussed climate finance and opposed tax concessions on local sales of electric vehicle parts, recommending a standard tax rate under the new EV policy.
