The federal government is considering the introduction of a carbon levy in the budget for the upcoming fiscal 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 implementing the carbon levy.
Sources further 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 spending, tagging, tracking, and reporting mechanisms.
Additionally, according to the Ministry of Finance, the talks will also focus on imposing a carbon levy, promoting electric vehicles, and subsidy-related matters. 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 set to commence the day after.
