Virtual discussions between Pakistan and the International Monetary Fund (IMF) to prepare the federal budget for the fiscal year 2025–26 are set to begin today (Wednesday).
The IMF mission is scheduled to arrive in Islamabad on Saturday for the second and final phase of the budget talks, which will continue until May 23.
Due to escalating tensions between Pakistan and India, the IMF’s visit was postponed over regional security concerns. As a result, initial discussions will be held virtually.
Sources revealed that the IMF team, originally expected on Tuesday, will now reach Islamabad over the weekend.
The Ministry of Finance stated that the budget consultations will primarily center on revenue generation and expenditure planning.
According to insiders, proposed tax measures totaling Rs. 400 billion will be discussed, along with specific sessions focused on offering tax relief. The government aims to persuade the IMF to support income tax relief for salaried workers.
Additionally, Pakistan will seek IMF approval for relief measures targeting the industrial and construction sectors. Ms. Iva Petrova from Bulgaria has been appointed as the IMF’s new mission chief for Pakistan.
The government intends to present the federal budget on June 2, ahead of the Eid holidays.
A tight fiscal policy is anticipated for the upcoming financial year.
The IMF has directed Pakistan to draft the budget based on achieving a 1.6% primary budget surplus relative to GDP.
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