T
he International Monetary Fund (IMF) is pushing Pakistan to crack down on tax evasion in the real estate sector as part of negotiations for a $1 billion loan release. This demand is tied to securing the next tranche of a $7 billion loan program.

    Pakistan has committed to activating the Real Estate Regulatory Authority (RERA) to address tax evasion, which will involve taking action against individuals who declare false property values. Those found guilty could face imprisonment and fines. Agents failing to register properties may be fined up to Rs 500,000, while those providing false information could be fined between Rs 200,000 and Rs 500,000.

    The Real Estate Regulatory Authority will have the power to impose prison sentences of up to three years. The loan negotiations are divided into two phases: technical discussions in the first phase, followed by policy-level talks. The IMF delegation is expected to meet with officials from Pakistan's Ministry of Finance, FBR, Power Division, and State Bank of Pakistan.

    The IMF will also be briefed on agricultural income taxes, property sector taxation, and plans to bring retailers into the tax net. They will provide suggestions for the upcoming fiscal year's budget and hold separate discussions with representatives from Punjab, Sindh, Khyber-Pakhtunkhwa, and Balochistan.