The government is holding negotiations with the International Monetary Fund to secure additional tax relief for Pakistan’s real estate sector, sources familiar with the discussions said.
Officials said virtual talks between Pakistan’s economic team and the IMF were under way, but the lender had so far not agreed to further concessions for the property sector. Efforts to persuade the IMF were continuing, with high-level virtual discussions expected in the coming days.
The government had already announced tax relief worth Rs. 115 billion for the real estate sector in the FY2026-27 budget, including reductions in withholding taxes under Sections 236C and 236K of the Income Tax Ordinance.
Under the proposed changes, the tax rate for property sellers under Section 236C has been capped at 2.75 per cent, while the rate for buyers under Section 236K has been reduced to 1.25pc.
Sources said officials of the Federal Board of Revenue and the IMF were expected to continue discussions as the government sought additional measures to support the property market and encourage investment in the construction sector.
However, any further relief package for real estate buyers and sellers will depend on the IMF’s approval in light of Pakistan’s commitments under its ongoing economic reform programme.
