Pakistan and the International Monetary Fund (IMF) are set to resume virtual negotiations today as both sides work to finalize critical elements of the upcoming federal budget for the fiscal year 2025-26. The discussions come at a crucial time as the government attempts to balance fiscal consolidation with much-needed economic relief.
Officials from the Ministry of Finance confirmed that today’s talks will emphasize support for the salaried class and industrial sector—two groups that have borne the brunt of high inflation and sluggish economic growth in recent months. The discussions are expected to address tax policy changes, spending priorities, and social protection measures in line with IMF recommendations.
A central issue on the agenda is the Federal Board of Revenue’s (FBR) revenue target for the new fiscal year. Ministry sources noted that while the IMF is pushing for tighter fiscal controls, the government is also advocating for policies that can spur economic activity without further burdening vulnerable populations.
Finance Secretary Imdadullah Bosal officially announced that the federal budget will be presented on June 10 in the National Assembly. He said the government had resolved internal uncertainties that delayed the process and that the new timeline reflects the ongoing collaboration with the IMF. Originally, the budget presentation was scheduled for June 2 but was postponed to allow more time for financial negotiations.
Bosal also mentioned that the structure of the budget is being realigned to meet IMF conditions, with key reforms under discussion. These include adjustments to the tax framework, allocation of development spending, and enhanced social safety measures.
Meanwhile, the scheduling of other critical pre-budget meetings remains under review. No final date has been confirmed for the National Economic Council (NEC) or the Annual Plan Coordination Committee (APCC) sessions, though officials say they are working to ensure that all preparatory steps are completed ahead of the June 10 presentation.
With the clock ticking and talks underway, the coming days are expected to shape the direction of Pakistan’s economic policy and its continued engagement with the IMF under the broader reform agenda.
