The government has agreed with the International Monetary Fund to impose a windfall tax of upto 40% on profits made by banks, sources said on Wednesday.

The reports of the tax come as policy-level discussions between the government and IMF delegation reached their conclusion on Tuesday.

Reports added that the IMF team is set to leave Pakistan on Thursday but the government is expecting ‘good news’ to arrive soon regarding the release of the second tranche.

The government hopes to collect almost Rs55 billion through the windfall tax which will be imposed on the profits from fiscal years 2021 and 2022.

The tax is likely to be collected next month.

The government hopes to enforce the tax easily because it does not require an amendment in the finance bill and will only require approval from the cabinet.