IMF Urges Pakistan to Tax Crypto Gains for $3B Bailout
The International Monetary Fund (IMF) has requested that Pakistan’s Federal Board of Revenue (FBR) impose Capital Gains Tax (CGT) on investments in cryptocurrencies in order to qualify for $3 billion in bailout funds. The IMF, during discussions regarding a $3 billion stand-by arrangement, advised Pakistan’s federal law enforcement agency, FBR, to implement taxes on capital gains from cryptocurrencies. The IMF also recommended that Pakistan review its taxation policies on real estate and listed securities. These changes aim to collect annual taxes on capital gains from real estate assets, regardless of whether the owner sells or retains the property. The IMF has also proposed stricter reporting requirements and hefty fines for non-compliance in the real estate market. It is anticipated that these recommendations will become part of the upcoming bailout package under the Extended Fund Facility (EFF), resulting in the introduction of a stringent cryptocurrency tax on capital gains in Pakistan’s budget for FY2024-25.
The $3 billion IMF aid is intended to stabilize Pakistan’s hyperinflated fiat economy and prevent a debt default, which has been caused by geopolitical tensions, natural disasters, and unstable governance. The four-day IMF review, which began on March 14, will result in the disbursement of $1.1 billion if Pakistan agrees to the conditions. The proposal to tax cryptocurrency capital gains comes almost a year after Aisha Ghaus Pasha, the Minister of State for Finance and Revenue, declared that the country would not legalize crypto trading. Pakistan is now focusing on artificial intelligence (AI) and aims to train one million AI-educated IT graduates by 2027. The policy framework outlines 15 targets to be achieved between 2023 and 2028, and to support these goals, Pakistan plans to establish a National AI Fund using the Ministry of IT and Telecom’s existing resources and funds.
3 thoughts on “IMF Urges Pakistan to Tax Crypto Gains for $3B Bailout”
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This is just another example of the IMF’s control over developing countries. Pakistan should have the freedom to decide its own taxation policies.
Wow, the IMF is really cracking down on tax regulations! 💪💼 It’s important for countries like Pakistan to ensure proper taxation on investments in cryptocurrencies.
Kudos to Pakistan for not shying away from embracing artificial intelligence! The future is digital, and investing in AI education will pave the way for progress.