The International Monetary Fund (IMF) has rejected Pakistan’s request to grant tax exemptions for foreign investment projects, sources said on Wednesday .
The Special Investment Facilitation Council (SIFC) had sought the exemptions during a detailed briefing to the IMF delegation, arguing that tax relief would help attract foreign investors. However, the global lender refused the request, maintaining its stance on fiscal discipline.
During the briefing, SIFC officials presented investment opportunities, governance structures, and infrastructure plans.
A key focus was the proposed railway project linking Chagai to Gwadar, intended to facilitate the transportation of minerals from the Reko Diq mine to the port city.
Pakistani officials urged the IMF to allow tax exemptions for this strategic initiative, citing its importance for economic growth.
The feasibility study for the railway line was conducted in collaboration with the Ministry of Finance and the Ministry of Railways. Officials revealed that potential investor nations have demanded state guarantees before committing funds.
However, under the ongoing loan programme, the Pakistani government cannot offer such guarantees for every investment.
Separately, Prime Minister Shehbaz Sharif has said the government is taking every possible step to facilitate the business community.
He was talking to Presidents of various Chambers of Commerce of Pakistan, who called on him in Islamabad. Assuring government’s full support, the Prime Minister said resolution of business community’s issues is a top priority.
He commended the Pakistani business community’s continued industrial and trade activities, despite economic challenges.
Shehbaz Sharif said through the digitization of the Federal Board of Revenue and other reforms, the business community is being provided with convenience and facilitation.
He said the Faceless Clearance System has significantly reduced the time for container clearance at ports. He urged the business community give suggestions for system reforms to increase the government’s tax revenue.