An International Monetary Fund (IMF) delegation is set to arrive in Pakistan tomorrow, Friday, to assist the government in preparing the federal budget for the fiscal year 2025–26. According to sources, the IMF team will engage with Pakistani officials to discuss critical aspects of the upcoming budget, including tax measures, revenue strategies, expenditure control, and allocations for development spending.
The federal budget for FY2025–26 is slated for presentation in the first week of June, and the IMF’s collaboration is expected to play a pivotal role in finalizing the proposals. The Ministry of Finance has projected a significant boost in tax collections, with the Federal Board of Revenue (FBR) tasked to achieve a revenue target of Rs15,270 billion—an ambitious increase of Rs2,300 billion over the current fiscal year. For comparison, the FBR collected Rs9,311 billion in taxes during the previous fiscal year. Direct tax collection for FY2025–26 is estimated at Rs6,570 billion, up from this year’s target of Rs5,512 billion.
The government has also taken steps to meet IMF conditions, including the recent approval of new offices for the Director General of Special Measures and two Directors at FBR Headquarters. These measures aim to enhance coordination with field formations, curb tax evasion, and streamline revenue collection by removing procedural complexities.
Last month, Finance Minister Muhammad Aurangzeb announced the successful conclusion of talks with the IMF for a loan tranche exceeding $1 billion. Speaking at a meeting chaired by Prime Minister Shehbaz Sharif, Aurangzeb confirmed that the IMF would release its statement on Saturday, signaling progress in securing the funds. The meeting, attended by business community representatives, also addressed the Memorandum for Economic and Financial Policies (MEFP), a key document outlining loan conditions. With the IMF’s visit on Friday, Pakistan aims to solidify its fiscal roadmap for the year ahead.
