– Policy talks for the next phase of the $7 billion loan package for Islamabad were formally launched on Tuesday between Pakistan and the visiting delegation of the International Monetary Fund, a major lender.

Nathan Porter is in charge of the IMF delegation, while Finance Minister Muhammad Aurangzeb leads Pakistan’s economic team. Rashid Langrial, the chairman of the Federal Board of Revenue (FBR), is also taking part in the discussions.

The IMF delegation will be briefed by Finance Minister Aurangzeb on Pakistan’s present economic circumstances. The IMF delegation will make suggestions for the budget for the upcoming fiscal year. Pakistan will submit a report on the first half of the current fiscal year as well as a report on the execution of the IMF-imposed restrictions under the $7 billion loan program.

The IMF mission will be briefed by the Pakistani team on real estate and agricultural income taxes.

The IMF delegation will offer suggestions about the release of a $1.1 billion tranche to Pakistan following the negotiations.

The IMF mission negotiations will last until March 15.

The IMF mission was previously briefed on tax and energy policies at the Pakistan Business Council office.

During an introductory session, representatives from the Ministry of Finance and the Ministry of Planning gave the visiting International Monetary Fund (IMF) delegation an update on the economic review for the release of the next installment of $1 billion from the $7 billion bailout package.

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.

In its most recent report released on Thursday, the Finance Division predicted that Pakistan’s Consumer Price Index (CPI)-based inflation would remain stable in February but would probably increase little in March.

The “Monthly Economic Update and Outlook” for February 2025 predicts that inflation will stay between two and three percent in February and then slightly climb to three to four percent in March.

The seasonal spike in food prices during Ramadan is the reason for this surge.

Higher household spending on food, drinks, and other consumables at this time usually results in inflationary pressures, which analysts believe will help drive the expected increase in the inflation rate.

The research also emphasized that, with the help of a supportive monetary policy, inflationary pressures should decrease over the year. Despite the sector’s sluggish recovery, this trend is expected to promote a more stable financial climate, increasing company confidence and aiding in the recovery of large-scale manufacturing (LSM). Even while the LSM recovered more slowly, the report also pointed out that export-oriented industries kept expanding.

According to the Finance Division’s projection, the State Bank of Pakistan (SBP) was able to reduce its benchmark interest rate by 100 basis points to 12% in January due in large part to the decline in inflation. After a string of dramatic rate reduction over the previous six months with the goal of promoting growth and containing inflation, this cut was a component of the larger monetary easing cycle.

One of the biggest rate cuts among emerging economies occurred last year when the SBP cut its policy rate from a record high of 22% in June 2024. The goal of these reductions was to control inflation, which had risen to a record 38% in May 2023 but had since begun to decline. According to data from the Pakistan Bureau of Statistics (PBS), CPI-based inflation from January 2025 was 2.4% year-over-year, which was lower than the 4.1% rate in December 2024.

According to the Finance Division study, positive supply-side variables and low domestic demand reduced inflationary pressures. The financial climate has become more stable as a result of these factors and declining interest rates, allowing the SBP to continue its strategy of gradual rate reductions.

The research also highlighted encouraging trends in foreign direct investment (FDI) and remittances, which have improved economic optimism. It is anticipated that these elements, in addition to robust growth in imports and exports, will contain the current account deficit in the upcoming months.