The International Monetary Fund (IMF) has permitted the Pakistani government to reduce the withholding tax on property purchases by 2% starting from April 2025, offering relief to property buyers.

According to sources, the IMF has approved the Federal Board of Revenue’s (FBR) request for a partial reduction in property tax. While the buyers win relief, the withholding tax on property sellers will remain unchanged.

The decision is part of ongoing discussions between Pakistan and the IMF to finalize a staff-level agreement. The government is also working to secure additional financial support through a Climate Resilience Fund, with further developments expected soon.

Meanwhile, the IMF has also allowed the Pakistani government to raise PKR 1,257 billion from local banks to address the circular debt issue in the energy sector. Despite international commitments of $10 billion, Pakistan has only received one-third of the pledged amount.