IslamabadOn Monday, Pakistan showed a frequency in imposing a carbon tax, a major proposal presented by the International Monetary Fund (IMF). The International Monetary Fund has suggested that this tax as part of its conditions to obtain a billion dollars loan under the sustainable and sustainable rank (RSF), which aims to support climatic elaborate countries in preparing disasters and energy transmission.
During the opening discussions of the final status on RSF, which focuses on disaster flexibility, government officials expressed his concerns about the possibly negative impact of imposing business growth. The International Monetary Fund team is located in Pakistan to finish the touches on the conditions related to the loan climate, which represents a transformation of the traditional rescue operations that focus on payments. A detailed session on the carbon tax is scheduled to be held today (Tuesday).
One of the proposed conditions for the loan is to impose carbon tax on vehicles operating in fossil fuel-especially the ICE vehicles (ICE). The transportation sector in Pakistan is responsible for about 10 % of carbon dioxide emissions in the country, and the shift towards cleaner vehicles will require great financing and investment. The Ministry of Industries is currently formulating a five -year policy for new energy vehicles (NEVS), and it is estimated that Pakistan will need at least 155 billion rupees by 2030 to replace traditional vehicles with clean energy alternatives.
Pakistan imports approximately 80 % of oil for the transportation sector. The transition to cleaner vehicles will not only reduce emissions, but also to provide foreign drainage reserves. However, the transformation is expensive, and subsidies will be needed to reduce the cost of new vehicles and infrastructure. For example, 2D electric wheels are 100 % more expensive than traditional motorcycles, while new three -power wheels are 123 % more expensive. The plan aims to ensure that by 2030, up to 90 % of the new bilateral and three -wheel purchases will be operated by renewable energy sources.
The government is studying measures such as exempting new energy from federal duties, reducing sales tax, and offering zero -dispensing tax on NEV purchases. In addition, the proposals include providing bank financing for vehicles of up to 10 million rupees, providing free registration and free access to new energy cars. The goal is to create about 750 charging stations by 2030.
The International Monetary Fund and the World Bank believes that the carbon tax is a decisive step for Pakistan’s financial health, which encourages the shift from fossil fuels. The World Bank’s report highlights that such a tax can expand the tax base by including the non -taxable economists’ producers, while enhancing efficiency and adopting renewable energy.
The government has not yet made a final decision on the carbon tax, with Prime Minister Shaybaz Sharif’s approval of any commitment. It is expected to make a clearer position by the weekend. In addition, the new International Monetary Fund facility will focus on the gradual removal of subsidies for the electric tube wells, support for natural gas for fertilizers, and the implementation of reforms in the sugar industry in Pakistan.
