The government has put a hold on the implementation of a relief package for the construction sector following objections raised by the International Monetary Fund (IMF), according to sources.
The package, originally introduced to stimulate the construction industry, was launched under Prime Minister Shehbaz Sharif’s initiative. However, the IMF has reportedly categorized the relief as an “amnesty” and raised concerns about its potential economic impact.
In response, Federal Minister for Economic Affairs Ahad Cheema has been assigned the task of revising the package. The updated proposal will be presented to the IMF review mission during their upcoming visit to Pakistan.
As part of the proposed revisions, sources indicate that the government may exempt non-filers from taxes on their first property purchase valued up to Rs5 million. Additionally, the task force has recommended eliminating the 8% tax on property transactions for tax filers. Other proposed changes include scrapping the 3% federal excise duty on property purchases.
Meanwhile, on February 12, an IMF delegation met with Pakistan’s Auditor General to review audit procedures and transparency in the public sector. The IMF mission is currently conducting a Governance and Corruption Diagnostic Assessment (GCDA) as part of its visit to Pakistan.
During discussions, the delegation was informed that the Parliament serves as the primary forum for auditing and accountability in the public sector. It was also noted that, as per parliamentary tradition, the Public Accounts Committee is typically led by the Leader of the Opposition or their nominee to ensure independent oversight.
