ISLAMABAD (Kashmir English): Pakistan and the International Monetary Fund (IMF) will begin virtual talks on the federal budget for the fiscal year 2025-26, with discussions set to continue until May 23.
These Pakistan IMF budget talks are part of the country’s ongoing engagement with the global lender under the Extended Fund Facility (EFF) programme.
The initial phase of the talks will be held online and involves technical-level discussions, during which economic data will be shared. Policy-level meetings are expected to take place in Islamabad next week when the IMF delegation arrives, following a slight delay in their visit.
According to Finance Minister Muhammad Aurangzeb, the federal budget, effective from July 1, will be finalised within the next three to four weeks. He confirmed that the Pakistan IMF budget talks would run from May 14 to 23.
Some of the key issues on the agenda include the overall budget framework, revenue targets, proposals on how to spend, and ways of dealing with the fiscal deficit. The government will also update the IMF on how they have advanced in structural reforms which include expanding the tax base, overhauling the energy sector and restructuring state-owned enterprises.
Sources indicate that Pakistan will push for tax relief for the salaried class, which is struggling with rising inflation and the cost of living. Special sessions are being arranged to present this case to the IMF during the ongoing Pakistan IMF budget talks.
These debates are very important because they will determine how the final budget targets and reform commitments should be. A successful negotiation will open doors for additional financial support and increase the confidence of the investors.
Early this year, the IMF executive board approved a $1 billion loan tranche for Pakistan under the EFF programme. Officials say that the country is not deviating from economic reforms as Pakistan IMF budget talks are said to be very helpful in maintaining economic support.
