The International Monetary Fund (IMF) has rejected Pakistan’s request to grant tax exemptions for foreign investment projects, Express News reported Wednesday with reference to sources.

The Special Investment Facility Council (SIFC) had sought the exceptions during a detailed orientation to the IMF delegation and argued that tax relief would help attract foreign investors. However, the global lender rejected the request and maintained its position on fiscal discipline.

During the briefing, SIFC officials presented investment opportunities, government structures and infrastructure plans.

A central focus was the proposed rail project that connects Chagai with Gwadar, which was intended to facilitate transport of minerals from the Reko Diq mine to the port city.

Pakistani officials called on the IMF to allow tax exemptions for this strategic initiative with reference to its importance for economic growth.

The Feasibility study for the railway line was carried out in collaboration with the Ministry of Finance and the Ministry of the Railway. Officials revealed that potential investor countries have demanded state guarantees before they obliged funds.

However, according to the ongoing loan program, the Pakistani government cannot offer such guarantees for any investment.

In the past, the IMF has accepted the government’s proposal to reduce electricity prices, with a final decision expected next month.

Sources indicated that electricity base -tariffs could be reduced by RE1 to RS2 per year. Unit, with both the National Electric Power Regulatory Authority (NEPRA) and the Ministry of Energy, which are now authorized to adjust the rates.

However, the IMF has expressed concern about delays in the privatization of distribution companies (discos). The IMF stated that improvements in the electricity sector are unlikely without first tackling the results of these companies.