The IMF team is set to arrive in Pakistan on May 15 for discussions on a fresh loan program requested by the country to address its financial requirements.
Reports suggest that the government is ramping up preparations for budgetary targets ahead of the IMF mission’s visit. The Ministry of Finance has instructed relevant ministries to swiftly meet these targets.
It is said that a comprehensive framework outlining crucial budgetary objectives will be formulated and shared with the IMF.
The sources indicate that approval for a strategic document concerning the fiscal year 2025 budget will be sought from the federal cabinet before the IMF team’s arrival.
Additionally, an initial assessment will be made for loan repayments, government expenses, pensions, and salaries. The Federal Board of Revenue (FBR) will establish defense outlays and tax collection aims.
Furthermore, insiders revealed that the Prime Minister’s Office has set a deadline for the economic team to finalize work on the fiscal year 2025 budget.
New loan talks
An International Monetary Fund (IMF) delegation is expected to visit Pakistan this month to deliberate on a new ‘long-term and substantial’ loan program crucial for addressing the nation’s debt repayments due this year.
Pakistan and the IMF have arranged discussions regarding the new loan program, to occur in two phases involving technical-level deliberations followed by policy-level negotiations.
Ahead of the upcoming talks, Pakistan confronts significant economic hurdles, including the collapse of a proposed IMF tax amnesty initiative.
