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IMF AGREES TO 2% CUT IN WITHHOLDING TAX ON PROPERTY PURCHASES Sunday, 23 March, 2025 I 22 Ramazan, 1446
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TAX RATES ON PROPERTY SELLERS REMAIN UNCHANGED PROFIT
STAFF REPORT
HE International Monetary Fund (IMF) has agreed in principle to reduce the withholding tax (WHT) on property purchases by 2%, starting April 2025, while leaving the tax rates on property sellers unchanged, The News reported. The decision follows the Federal Board of Revenue’s (FBR) request for relief to lower transaction costs in the real estate sector. The Fund has also consented to a reduction in Federal Excise Duty (FED) on buyers, decreasing the higher slab from 10% to 9%. However, the FED on sellers will remain at current levels. These concessions were part of a virtual meeting between Pakistani authorities and the IMF on Friday night, during which progress was made toward finalising the Memorandum of Economic and Financial Policies (MEFP). A staff-level agreement is expected next week. The FBR had originally proposed reductions under Sections 236C and 236K of the Income Tax Ordinance for both sellers and purchasers, but the IMF approved the cut only for buyers. Current WHT rates for buyers range between 3 to 4%, depending on the value of the property. The FBR presented data to support its argument that high transaction costs deterred investment and limited real estate activity. The IMF was informed that easing the tax burden on buyers could help stimulate the sector, which has seen capital flight due to high taxation. In a separate concession, the IMF
has approved a downward revision of the FBR’s tax collection target for March 2025 by Rs60 billion, reducing it from Rs1,220 billion to Rs1,160 billion. The adjustment accounts for fewer working days due to the Eid ulFitr holidays. The full-year target has also been revised from Rs12,970 billion to a new range of Rs12,332– 12,334 billion. To compensate for the March shortfall, the IMF has asked the FBR to boost collections in April and May to stay on track for the new annual target. Meanwhile, the IMF has also approved the government’s plan to raise Rs1,257 billion through banks to help address the growing circular debt in the power sector.
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Rs 20.00 | Vol XV No 257 I 8 Pages I Islamabad Edition
FBR’S MARCH TARGET REDUCED BY RS60BN DUE TO EID HOLIDAYS
Pakistan launches first PKR-denominated green bond to boost climate finance PROFIT
NEWS DESK
Pakistan launched its first-ever rupeedenominated Green Bond, marking a major milestone in efforts to mobilise private sector capital for environmentally sustainable development. The bond, issued by Parwaaz Financial Services Limited (PFSL), a subsidiary of Karandaaz Pakistan, has become the first green bond to be listed on the Pakistan Stock Exchange (PSX). Backed by a Rs1 billion investment commitment from multiple leading financial institutions, the Parwaaz
Green Action Bond is designed to channel funds into renewable energy, clean transport, and other green infrastructure projects. Speaking at the launch ceremony, Finance Minister Muhammad Aurangzeb said the initiative reflects Pakistan’s commitment to building an investment-friendly environment for climate-related ventures. He said that addressing climate challenges such as floods, pollution, and melting glaciers requires innovative financial solutions and urgent action. He added that Pakistan’s economy must embed sustainability in its finan-
cial systems to ensure long-term resilience. “The Green Action Bond represents a significant step toward attracting large-scale green investment and transforming the financial sector,” he said. Aurangzeb also referred to Pakistan’s discussions with the International Monetary Fund (IMF) under its Resilience and Sustainability Facility (RSF), aimed at securing longterm climate financing. He noted the IMF’s response was encouraging, marking Pakistan’s first formal engagement on climate financing with the Fund.
FIA arrests suspect involved in creating AI-generated images of govt officials MULTAN
STAFF REPORT
The Federal Investigation Agency (FIA) Cyber Crime Circle Multan on Saturday has carried out a major operation, arresting a suspect involved in creating and disseminating AI-generated images and videos targeting government officials and state institutions. According to a spokesperson, the accused identified as Ghulam Nabi,was apprehended during a raid in Sadiqabad. FIA officials said that the arrested suspect was engaged in an anti-state campaign,unlawfully using artificial intelligence to manipulate images and videos of political and government figures with the intent to damage their reputation. The suspect was accused of generating and sharing content on social media,depicting high-ranking government officials in a misleading manner. A case has been registered against the suspect and FIA has seized his social media accounts and other digital evidence. Further investigations are underway.
Pakistan’s Special Representative meets Afghan FM in Kabul KABUL
STAFF REPORT
Pakistan’s Special Representative for Afghanistan, Ambassador Mohammad Sadiq, called on Afghan foreign minister Mawlawi Amir Khan Muttaqi on Saturday in Kabul. In the meeting, bilateral relations between Afghanistan and Pakistan were discussed. Both sides agreed to enhance high-level engagements and dialogue to further consolidate bilateral relations. In a statement on X, Ambassador Mohammad Sadiq said that he reaffirmed Pakistan’s commitment to continued engagement and mutually beneficial ties with Afghanistan. According to Afghan media, foreign minister Muttaqi emphasized that obstacles to trade and transit benefit neither side and stressed that unrelated issues should not be linked together. The gradual and dignified return of Afghan refugees was also raised during the meeting.