Both sides also agree to tighten residency transfer rules
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have reached an agreement to abolish tax-free car import schemes, end baggage and gift schemes, and tighten the rules under the Transfer of Residence (ToR) scheme, sources said on Wednesday.
The report said that commercial import of used cars up to five years old will be allowed under strict conditions, including enhanced safety measures. The proposal is expected to be presented for approval before the Economic Coordination Committee (ECC) and the Federal cabinet.
Previously, vehicles from Japan or the UK were first imported via Dubai before reaching Pakistan. Measures are now being introduced to stop such indirect imports.
Officials in the Ministry of Finance said negotiations with the IMF, which began on September 25, have been constructive and positive. The IMF mission is returning today, but virtual talks will continue.
Sources said that upon IMF board approval, Pakistan is likely to receive the third tranche of the $7 billion Extended Fund Facility (EFF) program. Additionally, the first installment of $1.4 billion under the Resilience and Sustainability Facility is expected to be approved.
The Ministry of Finance officials added that disagreements persist between the government and IMF over the release of the Governance and Corruption report. A task force has submitted recommendations, including mandatory asset declarations for government officials from Grade 17 to 22 and their families.
The proposals also include amendments to the Civil Servants Act, Election Act, NAB Ordinance, and FIA Act, along with measures for transparent accountability, improved investigative capacity, and awareness campaigns against corruption.
