The International Monetary Fund (IMF) has advocated for more stringent measures to combat tax evasion within Pakistan’s real estate industry, emphasizing the need to address the issue of property value misrepresentation. As part of the planned reforms, the government has committed to the IMF that it will activate the Real Estate Regulatory Authority. According to reports, severe penalties, encompassing both imprisonment and fines, are to be levied against individuals and agents who provide inaccurate property valuations. Sources indicate that agents who fail to register could face fines of up to Rs500,000. The Real Estate Regulatory Authority may be empowered to impose prison sentences of up to three years. The authority will also be able to revoke the licenses of agents who supply false information. Agents may be subject to fines ranging from Rs200,000 to Rs500,000 for furnishing incorrect details. Misrepresentation during property transfers could result in fines between Rs500,000 and Rs 1 million. The revised regulations are designed to enhance transparency within the real estate sector and deter financial fraud. Pakistan’s negotiations with the International Monetary Fund (IMF) for the next $1 billion installment of its $7 billion loan program commenced on Monday. The finance ministry has stated that formal discussions between the IMF delegation and the Pakistani government team are scheduled to last for two weeks, given that Pakistan has already fulfilled the majority of the IMF’s rigorous requirements.
