ISLAMABAD: The International Monetary Fund (IMF) has reportedly urged Pakistan to ensure the rigorous implementation of anti-money laundering laws.
Discussions in Islamabad focused on the upcoming review for the disbursement of a $700 million loan tranche. Officials from the Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) briefed the IMF on anti-money laundering measures and suspicious bank transactions.
SBP provided insights into Pakistan’s economic performance from July to March, while FBR officials presented a report on tax crimes during the discussions. The IMF staff directed Pakistan to formulate a clear policy for detecting ‘suspicious transactions’ related to tax crimes and recommended incorporating stringent punishment clauses in the upcoming finance bill.
The delegation was informed that Pakistan already imposes strict penalties, including the blocking of bank accounts, for money laundering. The IMF mission emphasized the need for the FBR to rigorously enforce measures to combat money laundering, urging a proactive approach.
Earlier reports indicated that the IMF is pressuring Pakistan for increased income tax recovery from the retail and real estate sectors while advocating for higher income tax collection on agricultural income.
The IMF has called for joint efforts between the federal government and provinces to enhance tax recovery, suggesting the possibility of imposing a fixed tax on retailers after December if tax collection falls short.
