IMF Rejects Request for Tax Exemption on International Investment Projects by SFIC

Islamabad:The International Monetary Fund (IMF) has rejected the request made by the Special Investment Facilitation Council (SFIC) for tax exemptions on international investment projects.

According to reports, IMF officials met with Ministry of Finance and SFIC authorities, during which a briefing was provided highlighting that SFIC plays a pivotal role in providing a platform for investment and facilitating connections for international projects. However, despite the briefing, the IMF declined the request for tax exemptions on international investment projects, including those related to the Chagai to Gwadar railway track project.

Sources revealed that Pakistani officials had requested tax exemptions for the Chagai to Gwadar railway project, which is critical for transporting minerals from the Reko Diq area to Gwadar. The construction of a new railway line would be required for the transportation of minerals extracted from Reko Diq.

The feasibility study for the Chagai-Gwadar railway project was conducted by the Ministry of Finance, Ministry of Railways, and SFIC. However, despite interest from investor countries in the project, the Pakistani government, while under a loan program with the IMF, is unable to offer state guarantees for investments in the project.

Additionally, SFIC officials briefed the IMF delegation on matters related to investment, governance, and the overall structure of their projects.