Islamabad: The International Monetary Fund (IMF) has urged Pakistan to take strict action against tax evasion in the real estate sector as part of ongoing discussions to unlock a $1 billion loan tranche, news sources reported on Monday, citing sources.
A nine-member IMF delegation, led by Nathan Porter, arrived in Islamabad to review Pakistan’s economic performance and determine the disbursement of the next installment under the $7 billion loan program.
During the talks, the IMF pressed Pakistani authorities to address misdeclaration of property values and implement regulatory measures to enhance transparency. In response, the government assured the IMF of activating the Real Estate Regulatory Authority (RERA) to oversee compliance.
As part of the proposed reforms, individuals and real estate agents who provide false property valuations may face heavy penalties, including fines ranging from Rs200,000 to Rs1 million and imprisonment of up to three years. Additionally, agents who misreport transactions could have their licenses revoked.
The IMF delegation will remain in Pakistan for about two weeks to assess economic progress. Last month, the team also discussed climate finance and reportedly opposed tax concessions for locally sold electric vehicle parts, recommending a standard tax rate under the new EV policy.
The proposed crackdown on real estate tax evasion aligns with broader IMF demands for structural reforms aimed at improving Pakistan’s financial transparency and revenue collection.
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.
