IMF reviews Pakistan’s budget strategy

IMF reviews Pakistan’s budget strategy

The International Monetary Fund (IMF) mission has concluded its visit to Pakistan after holding detailed discussions with government officials on the country’s economic conditions, fiscal reforms, and budget planning. During the meetings, both sides reviewed Pakistan’s financial performance and discussed key strategies for the fiscal year 2026–27 budget.

According to the IMF, negotiations focused on maintaining economic stability, controlling inflation, and strengthening revenue collection. Talks on the upcoming budget will continue in the coming days as Pakistan works to finalize its financial roadmap for the next fiscal year.

Officials from the State Bank of Pakistan assured the IMF delegation that they remain committed to keeping inflation under control through tight monetary policies and careful economic management.

Pakistani authorities also reaffirmed their commitment to achieving a primary budget surplus equal to 2 percent of the country’s GDP in fiscal year 2026–27. The target reflects the government’s effort to reduce fiscal pressure and meet IMF program requirements.

Sources revealed that the IMF has recommended an 18 percent increase in the petroleum levy target to boost government revenues. The global lender also maintained its condition that electricity and gas tariffs should undergo revisions twice a year to reduce losses in the energy sector.

Meanwhile, the Federal Board of Revenue (FBR) received a massive tax collection target of Rs15.264 trillion for the next fiscal year. Provincial governments may also face pressure to improve revenue generation, as authorities aim to collect an additional Rs430 billion at the provincial level.

The IMF further urged the provinces to provide nearly Rs2 trillion in surplus funds to the federal government, a move considered essential for meeting overall fiscal targets and ensuring continued economic discipline under the IMF program.