The International Monetary Fund (IMF) has stipulated the imposition of a windfall tax on banks in Pakistan as a condition for completing the first review of the Stand-by Arrangement (SBA). This tax, potentially up to 40%, is targeted at bank profits and is part of the measures required by the IMF for Pakistan to secure the second tranche of a $3 billion loan program.
The Pakistani government has reportedly agreed to implement this windfall tax, which could amount to as much as Rs55 billion. It will be applicable to the profits made by banks in the financial years 2021 and 2022, with the collection scheduled for December
The decision was made during discussions between the IMF mission, led by Nathan Porter, and the Pakistani economic team. The team from Pakistan was led by Caretaker Finance Minister Shamshad Akhtar and included key figures such as the State Bank of Pakistan Governor Jameel Ahmad and Federal Board of Revenue Chairman Malik Amjed Zubair Tiwana, along with officials from the finance and energy ministries.