IMF demands Pakistan to restrict 'cash use' in real estate sector

The International Monetary Fund (IMF) has demanded the government to restrict the use of cash transactions in the real estate sector, according to sources.

The global lender also expressed dissatisfaction with Islamabad's efforts to bring real estate into the tax net, sources said.   

In a talk for a fresh bailout programme, Islamabad was asked to impose a tax on real estate and demanded to connect the property system with Federal Bureau Revenue (FBR).

The Washington-based loan facility directed the provincial and federal governments to work together to create a system to collect revenue from the buyers and sellers of the property.

However, the government assured the IMF that it would provide all real estate agents data to it.

Moreover, another promise made by the government with the Fund is to work on ending undocumented transactions in the real estate sector. The move is expected to be taken in the upcoming budget. 

On the other hand, the federal government has also conducted a meeting of the National Anti-Money Laundering and Counter Financing of Terrorism Authority in this regard.

The meeting decided to tighten the noose around money laundering and terror financing.