IMF Delegation Arrives in Pakistan for Crucial Budget Talks

A delegation from the International Monetary Fund (IMF) has arrived in Pakistan to kick off negotiations for the upcoming fiscal year’s budget, Finance Ministry sources told ProPakistani. The IMF team is expected to stay in the country until May 22, during which time they will engage in comprehensive discussions with Pakistan’s economic managers. Sources said the talks between the IMF and Pakistan’s economic team have already begun, focusing on finalizing the country’s income and expenditure plans for the next fiscal year. Key officials from the Ministry of Finance, the Federal Board of Revenue (FBR), and the Planning Commission are participating in these negotiations. Additionally, meetings are scheduled between the IMF delegation and representatives from the State Bank of Pakistan, the Economic Affairs Division, and the Ministry of Petroleum. The Ministry of Finance aims to finalize all budget proposals by May 22. Among the recommendations under consideration is a target economic growth rate of 4.4 percent for the fiscal year 2025-26. The proposed targets for the new budget also include a 4.8 percent growth rate for both the agriculture and industrial sectors and a 4.3 percent target for the services sector. These economic targets will first be presented to the Annual Plan Coordination Committee (APCC), which is scheduled to meet on May 26. Final approval of the targets will be sought from the National Economic Council. For the current fiscal year, the government had set a growth target of 3.6 percent. The agriculture sector’s production target was set at 2 percent, the industrial sector at 4.4 percent, and the services sector at 4.1 percent.