The federal government is exploring the possibility of introducing a carbon levy in the 2025-26 budget.
Sources indicate that the proposal’s initial framework will be reviewed during upcoming discussions with the International Monetary Fund (IMF). The IMF is expected to provide recommendations regarding the levyβs implementation.
Additionally, a technical team from the IMF will engage in talks with federal and provincial authorities from February 24 to 28. These discussions will focus on green budgeting, climate-related expenditures, monitoring systems, and reporting frameworks.
The Ministry of Finance has also highlighted that the negotiations will address the carbon levy, the promotion of electric vehicles, and subsidy-related policies. Furthermore, the IMF is expected to suggest strategies for expanding green budgeting within the upcoming financial plan.
Notably, the IMF delegation is set to arrive in Pakistan tomorrow, with formal discussions scheduled to begin the following day.
