ISLAMABAD: An International Monetary Fund (IMF) delegation will arrive in Pakistan on Friday to assist in the preparation of the federal budget for the fiscal year 2025–26.
Sources reveal that during their visit, the IMF team will engage with Pakistani authorities to discuss proposed tax policies, strategies to enhance revenue, and measures to control government expenditure. Discussions will also focus on the allocation for development spending in the upcoming budget.
The federal budget for FY2025–26 is scheduled to be presented in early June, with the IMF team working closely with Pakistani officials to finalize key budget proposals.
The Ministry of Finance has set an ambitious target for the Federal Board of Revenue (FBR), aiming for a substantial increase in tax collections, with a revenue target of Rs15,270 billion for the upcoming fiscal year. This represents an increase of Rs2,300 billion compared to the current fiscal year’s target.
Last year, the FBR collected Rs9,311 billion in taxes, and for FY2025–26, the target for direct tax collection is set at Rs6,570 billion, up from Rs5,512 billion in the current year.
In addition, the federal government recently fulfilled another IMF condition by approving the establishment of offices at the FBR Headquarters for the Director General of Special Measures and two Directors, aimed at improving coordination with field units to combat tax evasion. These measures are expected to streamline tax collection and eliminate obstacles that hinder revenue generation.
Finance Minister Muhammad Aurangzeb also confirmed last month that negotiations between Pakistan and the IMF for a $1 billion loan tranche had been successful. During a meeting at the Prime Minister’s House, chaired by Prime Minister Shehbaz Sharif, Aurangzeb reassured the business community that the IMF would issue a statement confirming the progress on the loan agreement by Saturday.