Pakistan to 'finalise' FY2024-25 budget targets before IMF team arrival

ISLAMABAD: Pakistan government has decided to ‘finalise’ budget targets for FY2024-25 before the arrival of the International Monetary Fund (IMF) mission to Islamabad, ARY News reported, citing sources.

The IMF team is scheduled to arrive in Pakistan on May 15 for the talks on the fresh loan programme, being sought by the South Asian nation to address financial needs.

Sources say that the government has expedited preparations for the budget targets before the arrival of the IMF mission. In this regard, the Ministry of Finance has directed relevant ministries to complete targets expeditiously.

The sources said the framework for all important budgetary targets will be prepared and sent to the IMF.

Read more: IMF mission to arrive in Pakistan in May for new loan

According to sources, the approval of a strategic paper on the FY25 budget will also be sought from the federal cabinet before the arrival of the IMF mission.

Furthermore, an initial estimate will be prepared for loan repayments, government expenditures, pensions, and salaries. The Federal Board of Revenue (FBR) will also determine defense expenditures and tax collection targets.

Sources further revealed that the Prime Minister’s Office has also set a target for the economic team to complete work on the FY25 budget.

New loan negotiations 

A mission of the International Monetary Fund (IMF) will arrive in Pakistan this month to discuss a new ‘long-term and larger’ loan programme, sought to help government repay billions in debt due this year.

Sources told ARY News that Pakistan and the international lender had scheduled talks on a new loan programme. The talks will take place in two phases, with technical-level discussions followed by policy-level negotiations.

Pakistan faces significant economic challenges ahead of the new talks, including a failed tax amnesty scheme proposed by the IMF.