The International Monetary Fund (IMF) has urged action against people who falsify property values and has asked for tougher steps to stop tax cheating in Pakistan’s real estate industry.
The government promised the IMF that it would activate the Real Estate Regulatory Authority as part of the proposed reforms.
Sources claim that people and brokers who inflate property valuations will face severe consequences, such as fines and jail time.
Agents who do not register may be fined up to Rs500,000, according to sources.
The Real Estate Regulatory Authority has the authority to inflict a maximum sentence of three years in prison. Agents that give misleading information risk having their licences revoked by the authority.
Agents who give false information risk fines ranging from Rs200,000 to Rs500,000.
Fines for property transfer misstatements might range from Rs 500,000 to Rs 1 million.
The new rules are intended to stop financial fraud and increase openness in the real estate industry.
Negotiations for the next $1 billion installment of Pakistan’s $7 billion loan programme with the International Monetary Fund (IMF) started underway Monday.
According to the finance ministry, since Pakistan has previously complied with the most of the IMF’s stringent requirements, formal discussions between the IMF mission and the Pakistani government team were scheduled to last for two weeks.
