The International Monetary Fund (IMF) has urged Pakistan to take immediate and strict measures against trade-based money laundering ahead of the federal budget for fiscal year 2026-27.
The IMF has also expressed concern over suspicious financial transactions in the trade, banking, real estate and non-financial business sectors.
During preparations for the new fiscal year budget, the IMF asked the government to stop money laundering being carried out under the guise of trade.
The Fund also called for addressing shortcomings in the exchange of beneficial ownership information and strengthening financial supervision.
Concerns over suspicious transactions
According to the report, the IMF raised concerns over weaknesses in monitoring suspicious transactions across the banking sector, non-financial businesses and other key sectors.
It also demanded an increase in suspicious transaction reports from non-financial business entities.
The IMF urged authorities to tighten monitoring of suspicious financial activity in different sectors, where a large portion of untaxed and black money has reportedly been invested.
Real estate sector under scrutiny
The IMF expressed concern over low reporting of suspicious financial transactions in the real estate sector. It also termed the performance of the DNFBP system unsatisfactory.
The Federal Board of Revenue had established the DNFBP system to monitor the real estate sector. Under this system, suspicious transaction reports are sent to the Financial Monitoring Unit, sources said.
Sources said the FBR has intensified investigations into allegations of concealed income by conducting raids on housing societies. The action is part of efforts to trace secret income and improve reporting of suspicious transactions in the real estate sector.
IMF delegation to arrive for budget talks
An IMF delegation is expected to arrive in Pakistan today to prepare proposals and recommendations for the new federal budget. According to Ministry of Finance sources, formal talks with the delegation will begin tomorrow.
Sources said negotiations between Pakistan and the IMF will continue for about a week.
During the discussions, both sides will review tax targets, economic strategy, fiscal discipline and budget proposals related to development spending.
Measures to align government expenditure with budget targets will also be discussed.
According to sources, the new federal budget is being prepared in consultation with the IMF to ensure fiscal stability and meet economic goals.
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