Pakistan-IMF talks: Tax targets tied to spending cuts, defense budget exempted in FY2025 plan

Pakistan Delays Budget as IMF Talks Continue

The International Monetary Fund (IMF) has confirmed that talks on Pakistan’s FY2026 budget are still in progress. The announcement came after the IMF’s staff-level visit to Islamabad concluded on May 23. Pakistan’s federal government has postponed the FY2025-26 budget presentation. Initially scheduled for June 2, the new date is now set for June 10. This delay signals ongoing struggles in finalizing fiscal targets with the IMF. The Economic Surv…

IMF mission stresses 1.6pc GDP surplus target in Pakistan fiscal talks

ISLAMABAD: The International Monetary Fund (IMF) mission, led by Nathan Porter, visited Pakistan from May 19 to discuss the country’s upcoming budget strategy and broader economic reforms, according to an official statement released on Friday. The discussions primarily focused on Pakistan’s fiscal policies, with Porter focusing on the need for the country to achieve a primary balance surplus target of 1.6 percent of GDP. The IMF mission urged Pa…

IMF reluctant on budget relief measures, ties them to FBR revenue

Government seeks IMF waiver on fertiliser and pesticide taxes in upcoming budget ISLAMABAD The visiting International Monetary Fund (IMF) team has indicated its unwillingness to support broad-based relief for the salaried, property, beverage, and export sectors, linking any such measures to a corresponding reduction in government expenditures and the Federal Board of Revenue’s (FBR) tax collection target. This position has emerged as the central…

Pakistan-IMF talks: Tax targets tied to spending cuts, defense budget exempted in FY2025 plan

As discussions continue between Pakistan and the visiting International Monetary Fund (IMF) team, it has emerged that the Fund is linking the Federal Board of Revenue’s (FBR) tax collection targets to a reduction in government expenditures. However, the defense budget is expected to remain untouched, with authorities planning an increase due to prevailing regional security concerns. The IMF delegation, led by Jihad Azour, Director for the Middle…