Govt Likely to Impose Carbon Levy in Budget 2025-26

The federal government is in a rush to come up with newer tax regimes and has decided to seek permission from the International Monetary Fund (IMF) to impose a carbon levy in the federal budget 2025-26, well-informed sources told ProPakistani. Initial discussions are set to take place during the new round of talks next week with the Washington-based lender. The lender’s delegation is arriving today and will begin talks starting Monday to provide recommendations on implementing the levy. A technical delegation will hold negotiations with federal and provincial representatives from February 24 to 28. Sources said talks will focus on green budgeting, climate spending tracking, and reporting mechanisms. Besides the carbon levy, discussions will also cover electric vehicles and subsidy frameworks. The IMF is expected to propose expanding green budgeting in the upcoming budget, sources added.