The International Monetary Fund (IMF) is urging Pakistan to implement stricter tax measures on cryptocurrency profits in order to secure a $3 billion bailout for its struggling economy.

Recent reports indicate that Pakistan’s cryptocurrency industry is valued at nearly $20 million. By 2023, the country was ranked among the top five nations with the highest number of cryptocurrency investors, with approximately 15 million people actively owning digital assets.

During negotiations for a $3 billion standby agreement with the IMF, the lender has recommended that Pakistan’s Federal Board of Revenue (FBR) expand the coverage of Capital Gains Tax (CGT) to include transactions involving cryptocurrencies. The IMF also advises a review of tax brackets for real estate and publicly traded securities to ensure that all profits are subject to taxation, regardless of the ownership duration.

Under the proposed guidelines, real estate developers in Pakistan would be required to document and disclose every transfer of real estate interest before the finalization and official registration of property titles. Failure to comply with these regulations could result in fines, as well as secondary liability for unpaid taxes. This initiative aims to regulate the common practice of trading plot files in housing projects.

Once Pakistan agrees to the conditions set by the IMF, approximately $1.1 billion will be released, completing the remaining portion of the bailout agreement established the previous summer. This agreement helped prevent Pakistan from defaulting on its sovereign debt.

For more information on the latest developments in the cryptocurrency world, visit Global Crypto News.

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