The federal government is considering the introduction of a carbon tax in the budget for the coming financial year 2025-26.
According to sources, the initial draft of the proposal will be discussed during upcoming negotiations with the International Monetary Fund (IMF) delegation. The IMF is expected to provide recommendations on the implementation of the carbon tax.
Sources also revealed that a technical delegation from the IMF will hold discussions with federal and provincial authorities from February 24 to 28. These negotiations will cover green budgeting, climate costs, labeling, tracking and reporting mechanisms.
According to the Ministry of Finance, the negotiations will also focus on imposing a carbon tax, promoting electrical vehicles and subsidi -related affairs. The IMF delegation is also expected to propose measures to expand green budgeting in the upcoming financial plan.
It is noteworthy that the IMF delegation is scheduled to arrive in Pakistan tomorrow, with formal negotiations to begin the following day.
