The International Monetary Fund (IMF) has again expressed reservations over Pakistan’s request to reduce taxes on property transactions, delaying progress on the matter, sources revealed on Monday.

The development came amid report that the Fund had also shot down Pakistan’s propsal to reduce electricity prices.

Sources told Aaj News that no consensus had been reached on lowering the March 2025 revenue targets – a move that would have allowed the Federal Board of Revenue’s (FBR) to reduce withholding tax by 2%.

The IMF has reportedly refused to ease taxes on tobacco and beverages, further complicating the negotiations.

The global lender has stressed that Pakistan must provide additional assurances before a staff-level agreement can be finalized.

In a new condition, the IMF has asked provincial governments to refrain from intervening in wheat procurement. However, there has been some progress as the IMF has agreed to include climate finance under its funding facility.

This initiative will be offered under the Resilience and Sustainability Facility.

In a related development, Dawn reported that the IMF had also shot down Pakistan’s proposal to reduce electricity price by R8 per unit or kilowatt hours.