ISLAMABAD: Pakistan and IMF have decided to continue negotiations on the budget for fiscal years 2026 and 2027 in the coming days.
The IMF has urged Pakistan to expand the tax net, improve tax collection, and continue economic reforms. The State Bank has also assured to adopt a strict monetary policy.
The IMF statement said that the IMF delegation held detailed and constructive discussions with Pakistani authorities on the recent economic situation, reform measures, and the budget strategy for the current fiscal year.
The talks also reviewed the potential impact of the ongoing tensions in the Middle East on the Pakistani economy, as well as progress on the reform agenda under the Extended Fund Facility.
According to the IMF, Pakistani authorities reiterated their commitment to maintaining a primary budget surplus of 2 percent of GDP in the current fiscal year. To this end, they agreed to expand the tax net, reform government spending, and strengthen fiscal management at the federal and provincial levels.
The State Bank expressed its commitment to maintaining a tight monetary policy to control inflation.
The talks also reviewed addressing environmental risks under the RSF programme, incorporating environmental factors into budget planning, and electricity subsidy reforms.
The IMF mission appreciated the cooperation of the federal and provincial authorities and their commitment to better economic policies and agreed to continue the negotiations.
