IMF delegation to 'arrive' in Pakistan for budget 2025-26 talks

ISLAMABAD: An International Monetary Fund (IMF) delegation will arrive in Pakistan to provide assistance in the preparation of the federal budget for the fiscal year 2025-26, ARY News reported citing sources.

According to sources, the team will engage with Pakistani authorities to discuss proposed tax policies and revenue enhancement strategies.

The IMF team will also focus on allocating funds for development spending in the upcoming budget, which is scheduled to be presented in early June.

The Ministry of Finance has set an ambitious target for the Federal Board of Revenue (FBR), aiming to increase tax collections substantially.

The revenue target for the upcoming fiscal year is Rs15,270 billion, representing an increase of Rs2,300 billion compared to the current fiscal year’s target.

Earlier, Pakistan secured $1.3 billion climate financing from the International Monetary Fund (IMF).

This was stated by IMF Director of Communications Julie Kozack while responding to a query of ARY News during a press conference.

Kozack confirmed that discussions on the Extended Fund Facility (EFF) and climate financing were held separately. Pakistan successfully secured $1.3bln after successful negotiations on climate financing, the IMF communications director said and added the funds will be disbursed over 28 months.

IMF official also stated that Pakistan’s 37-month Extended Fund Facility program, finalized in September, will provide $7 billion in installments.

Following successful staff-level negotiations on March 25, Pakistan has completed its first EFF review, which will unlock an additional $1 billion.