Govt weighs carbon levy in next budget

The federal government is considering imposing a carbon levy in the upcoming 2025-26 budget, with discussions on the initial draft set to take place during the upcoming second round of negotiations with the International Monetary Fund (IMF).

A technical delegation of the global lender is set to arrive in the country on Sunday (today).

The delegation will hold negotiations with the federal government and provinces from Feb 24-28.

The government and fund representatives will discuss green budgeting, climate spending, tagging, tracking and reporting.

The fund is likely to recommend imposing a carbon levy in the FY2025-26 budget, and the initial draft will be discussed during the upcoming talks.

The finance ministry sources said the matters of carbon levy, electrical vehicles and subsidies will also come under discussion during the meeting.

The IMF delegation will arrive in Pakistan today and the negotiations will be started from Monday.