ISLAMABAD – The virtual talks between Pakistan and the International Monetary Fund (IMF) regarding the preparation of the federal budget for the upcoming fiscal year 2025–26 will begin on Wednesday (today).
For the second and final phase of the budget negotiations, the IMF mission will arrive in Islamabad on Saturday, and discussions will continue until May 23.
According to details, the ongoing Pakistan-India tensions have impacted the IMF team’s visit to Pakistan. Due to regional security concerns, the IMF delayed its trip to Islamabad and will now commence virtual talks on the new budget from today (Wednesday).
The sources said that the IMF mission is now expected to arrive in Islamabad over the weekend instead of Tuesday.
According to the Ministry of Finance, the upcoming budget discussions would focus on revenues and expenditures.
Sources said that the tax measures worth Rs. 400 billion will be considered in the new budget, and there will be special sessions on tax relief initiatives. Special preparations are being made to convince the IMF to approve income tax relief for salaried individuals.
The efforts will also be made to persuade the IMF to support relief for the industrial and construction sectors. The IMF has appointed Ms. Iva Petrova, associated with Bulgaria, as the new mission chief for Pakistan.
The government plans to present the new budget on June 2, before the Eid holidays.
The fiscal policy is expected to remain tight in the upcoming financial year.
The IMF has asked Pakistan to prepare the budget based on the assumption of a 1.6% primary budget surplus relative to GDP.
IMF clears $1 Billion Tranche for Pakistan despite India’s desperate efforts to block it
