ISLAMABAD: The International Monetary Fund (IMF) will begin virtual discussions on Pakistan’s upcoming budget for fiscal year 2025-26 today [Wednesday], as the visit of its mission to Islamabad was delayed due to regional security concerns.
The virtual talks will continue until May 16, 2025, with discussions focusing on key fiscal issues, including taxation measures and budget targets.
Originally planned to be held in person, the IMF mission’s visit was postponed after tensions in the region, particularly due to security risks affecting air travel. The mission’s arrival in Islamabad is now expected by the weekend, subject to the evolving security situation. Despite this change in schedule, the IMF emphasized that the delay will not affect the agenda or timeline of the budget discussions.
Earlier, Finance Minister Muhammad Aurangzeb said that the budget would be finalised within the next three to four weeks, and negotiations with the IMF are scheduled to run from May 14 to May 23.
As the government moves forward with the budget preparations, the IMF has appointed Iva Petrova, a Bulgarian economist, as the new Mission Chief to Pakistan. She will join the talks alongside Nathan Porter, the outgoing mission chief. Petrova, who holds a PhD in economics, has previously led IMF missions in Armenia and has worked with teams in Israel, Iceland, and Latvia.
Pakistan is set to present its budget for the 2025-26 fiscal year on June 2, ahead of the Eidul Azha holidays. This will be Finance Minister Muhammad Aurangzeb’s second budget presentation, which is expected to align with the framework outlined in the ongoing IMF talks.
According to the news report, the IMF has set ambitious targets for Pakistan’s fiscal policy, including a 1.6% primary budget surplus and tax collection of approximately Rs14.3 trillion, which represents 11% of the country’s GDP. The IMF will assess whether Pakistan can realistically meet these targets and will review the effectiveness of the government’s planned reforms.
