Preparations for the federal budget 2026-27 have officially begun as an International Monetary Fund (IMF) delegation arrived in Pakistan for more than a week of talks with the country’s economic team.
The IMF mission will remain in Pakistan until May 20, with key meetings planned with the Ministry of Finance, the Federal Board of Revenue, the State Bank of Pakistan and other government departments.
Negotiations between Pakistan’s economic team and IMF officials have started, with the upcoming federal budget at the center of discussions.
The two sides are expected to review new budget targets, tax revenue plans and financial reforms needed for the next fiscal year.
Tax target may exceed Rs15,000bn
According to sources, Pakistan is proposing to set the tax collection target for fiscal year 2026-27 at more than Rs15,000 billion.
The IMF delegation and Pakistani authorities will discuss tax measures, economic targets and revenue-generation proposals before finalizing key budget directions.
Important meetings are scheduled between IMF officials and the Ministry of Finance.
The delegation will also hold consultations with the FBR, State Bank of Pakistan, Ministry of Energy and other institutions and departments involved in economic and structural reforms.
Development spending, financial discipline
Sources said proposals related to development expenditure for the 2026-27 budget will also be prepared during the talks.
Measures to improve financial discipline will be discussed, while proposals to better align government expenditure with budgetary limits will also be considered.
Progress on energy-sector reforms will come under review during the IMF mission’s visit.
The talks will also cover privatization, broader financial reforms and steps aimed at strengthening Pakistan’s economic framework under the IMF program.
