ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have commenced virtual negotiations to discuss the upcoming fiscal year’s budget, sources revealed. The talks, which are expected to continue for ten days, involve officials from the Ministry of Finance and the Federal Board of Revenue (FBR).
Data on Pakistan’s current economic performance has been shared with the IMF, including tax collection figures and revenue targets. The discussions aim to finalize new budget targets based on comprehensive consultations.
In the first nine months of the current fiscal year, the FBR collected Rs. 8,453 billion in taxes, marking a shortfall of Rs. 715 billion against the targeted revenue. Non-tax revenue stood at Rs. 4,027 billion, surpassing the Rs. 3,956 billion target by Rs. 71 billion. Petroleum levies contributed Rs. 833.84 billion during this period, while provincial governments collected Rs. 684 billion in taxes, exceeding provincial targets by Rs. 78 billion.
Positive signals include increases in primary surplus, remittances, and exports, according to briefing reports. The proposed federal budget for the upcoming fiscal year is set at Rs. 18 trillion, with the FBR’s tax target proposed to be aligned with 11% of GDP. The tax revenue goal for 2025-26 is expected to exceed Rs. 14 trillion.
The IMF negotiations will also cover reforms in tax administration, privatization efforts, and measures to improve energy sector efficiency. Priority areas include trader registration, track and trace systems, and compliance risk management to enhance revenue collection and economic stability.
Both sides aim to reach an agreement that will support Pakistan’s economic growth and fiscal sustainability in the coming year.
