The International Monetary Fund (IMF) has rejected Pakistan’s request to grant tax exemptions on international investment projects.

Amid ongoing policy-level economic review talks in Islamabad, Pakistan has sought $2 billion in investment from Gulf nations to construct a railway track linking Chagai to Gwadar.

However, the IMF dismissed the Special Investment Facilitation Council’s (SIFC) proposal to exempt these projects from taxation.

During the discussions, SIFC officials briefed the IMF delegation on investment strategies, governance, and structural reforms, emphasising their role in bridging investors with opportunities in Pakistan.

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According to finance ministry sources, a railway track is crucial for transporting minerals from Reko Diq to Gwadar.

Plans include constructing a brand-new railway line specifically for this purpose. Feasibility studies have been conducted by the Finance Ministry, Railway Ministry, and SIFC.

Gulf nations have reportedly demanded a government guarantee for their investment.

However, sources indicate that Pakistan, while under an IMF loan program, is unwilling to provide sovereign guarantees for every investment.

Discussions between the finance and law ministries are ongoing to amend regulations related to the sovereign wealth fund.