ISLAMABAD: The federal government will finalize the budget for the fiscal year 2025-26 after consulting the International Monetary Fund (IMF), sources revealed.
Sources in the Ministry of Finance told Geo News that another IMF delegation will visit Pakistan soon. The discussions will take place both in person and online.
Officials said these talks will continue until the budget is finalized. The government plans to present the budget in the first week of June.
Key Focus of Discussions
The discussions will focus on economic policies and revenue measures. The goal is to align Pakistan’s financial plans with IMF recommendations.
Sources confirmed that the IMF has agreed to provide limited relief in the real estate sector. The federal excise duty on the first sale and purchase of property will be removed. However, withholding and income tax rates will remain unchanged.
Similarly, the tax rate for property sellers will stay the same.
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IMF Approval Timeline
The IMF Executive Board is expected to approve key recommendations by late May or June. By then, Pakistan’s budget will already be prepared.
If Pakistan fails to comply with IMF conditions, it may lose access to climate-related financial assistance.
IMF Board Meeting After Budget Finalization
The IMF Executive Board will review Pakistan’s program only after the budget details are finalized. Due to the upcoming Spring Meetings in April, Pakistan’s program will not be discussed during that period.
This development follows a staff-level agreement (SLA) between the IMF and Pakistani authorities. The agreement covers the first review of the ongoing 37-month bailout program.
Pakistan to Receive $1 Billion Under Bailout Program
The deal, awaiting approval from the IMF Executive Board, will unlock approximately $1 billion for Pakistan. This will bring total disbursements under the Extended Fund Facility (EFF) to around $2 billion.
The government remains focused on meeting IMF conditions to ensure smooth financial assistance. The upcoming budget will play a key role in securing future funding.
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