ISLAMABAD: The IMF has rejected the demand for tax exemption on international investment projects by the Special Investment Facility Council (SIFC).
The IMF was briefed on the work of the SIFC. SIFC officials briefed the IMF delegation on investment, governance and structure. On this occasion, Pakistani officials demanded tax exemption on the Chagai-Gwadar railway track project.
According to sources, a railway track is needed to transport minerals from Reko Diq to Gwadar. A new line will be built to transport minerals from Reko Diq to Gwadar.
The Ministry of Finance, the Ministry of Railways and the SIFC conducted a feasibility study on the Chagai-Gwadar rail project. It was informed in the briefing that the investing countries are seeking state guarantees for investment in this project. According to sources, the government of Pakistan cannot provide a state guarantee on every investment while under the loan program.
