Preparations for the upcoming federal budget for fiscal year 2025-26 are underway, with the government reviewing key fiscal plans in coordination with the International Monetary Fund (IMF).
“Federal Minister for Finance and Revenue Muhammad Aurangzeb held a meeting with the visiting IMF Mission led by Mission Chief Iva Petrova in Islamabad to discuss Pakistan’s macroeconomic outlook, preparations for the upcoming federal budget, and the government’s ongoing reform agenda aimed at strengthening economic stability and promoting sustainable growth,” read a statement released by the Ministry of Finance on Wednesday.
Governor State Bank of Pakistan (SBP) Jameel Ahmad, Secretary Finance Division Imdad Ullah Bosal, Chairman FBR Rashid Mahmood Langrial, and senior officials attended the meeting.
Earlier in the day, the SBP announced it had received about $1.3 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
“The amount would be reflected in SBP’s foreign exchange reserves for the week ending on May 15, 2026,” the SBP said.
Pakistan’s 37-month EFF arrangement was approved on September 25, 2024, and aims to build resilience and enable sustainable growth.
Meanwhile, sources earlier told Business Recorder that the government is unlikely to introduce any new taxes in the upcoming budget, as it plans to achieve next year’s revenue target through enforcement and administrative measures estimated at Rs778-780 billion.
Sources said that the federal budget for the next fiscal year is expected to provide relief to taxpayers, with the authorities relying on alternative revenue-generation measures to offset potential revenue losses.