The International Monetary Fund (IMF) has called for stricter measures to curb tax evasion in Pakistan’s real estate sector, pushing for action against those misdeclaring property values.
As part of the proposed reforms, the government has assured the IMF of activating the Real Estate Regulatory Authority.
According to sources, strict penalties, including imprisonment and fines, will be imposed on individuals and agents who falsely declare property values.
As per sources, agents failing to register could face fines of up to Rs500,000.
The Real Estate Regulatory Authority may be granted the power to impose up to three years of imprisonment. The authority could revoke licenses of agents providing false information.
Read more: Pakistan, IMF begin talks for next $1billion tranche
Agents may be fined between Rs200,000 to Rs500,000 for providing incorrect details.
Misdeclaration in property transfers could lead to fines ranging from Rs500,000 to Rs 1 million.
The new regulations aim to enhance transparency in the real estate sector and prevent financial fraud.
Pakistan’s negotiations with the International Monetary Fund (IMF) for the next $1billion tranche of its $7billion loan programme began Monday.
The finance ministry said official talks between the IMF mission and the Pakistani government team were set to last for two weeks as Pakistan had already met most of the IMF’s strict conditions.
