IMF Mission begins talks with Pakistan over FY 2026-27 budget

ISLAMABAD: The IMF mission arrived in Pakistan for budget 2026-27 talks, reached the Ministry of Finance and holding talks with Pakistani officials, sources said on Wednesday.

Sources said that the budget talks begin with an introductory session with the delegation of the International Monetary Fund (IMF), which arrived in Pakistan for more than a week of talks with the economic team of the country.

Preparations for the federal budget 2026-27 will be finalized by the next week, sources said. “The next year’s budget will be finalized in consultation with the IMF mission”.

The IMF delegation arrived in Pakistan for more than a week of talks, and it will remain in Pakistan until May 20, with key meetings planned with the Ministry of Finance, the Federal Board of Revenue, the State Bank of Pakistan and other government departments.

The sides are expected to review new budget targets, tax revenue plans and financial reforms needed for the next fiscal year.

Pakistan received $1.32 billion from the IMF after its Executive Board completed the third review under the Extended Fund Facility (EFF), the State Bank of Pakistan (SBP) said on Wednesday.

According to the central bank, the IMF had approved the disbursement of $1.1bn under the Extended Fund Facility (EFF) and around $220 million under the Resilience and Sustainability Facility (RSF).