IMF Regional Director to Visit Pakistan This Week

The International Monetary Fund’s (IMF) Middle East and Central Asia Director Jihad Azour is expected to visit Pakistan this week and meet Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb, official sources told ProPakistani. Pakistan is in the process of finalizing its federal budget for FY2025-26 in line with conditions agreed with the IMF. One of the core requirements under the IMF staff-level agreement is the parliamentary approval of the budget within the agreed timeline. Sources revealed that ongoing discussions with the IMF include critical issues such as tax revenue targets, defense expenditure, and certain grants. The federal government has even decided to allocate approximately Rs. 2.504 trillion for defense in the upcoming fiscal year, an 18 percent increase over the current year’s defense budget. In a separate development, the Federal Board of Revenue (FBR) presented its taxation proposals for the next fiscal year to the Prime Minister on Monday. The proposed tax collection target stands at around Rs. 14.07 trillion. However, this figure falls short by about Rs. 240 billion of the target earlier agreed with the IMF for FY2025-26. To bridge this shortfall, the government is considering a significant increase in petroleum levy rates through the Finance Bill 2025, sources said. Sources added that Prime Minister Shehbaz Sharif has termed the current proposals for income tax relief and super tax reduction for the salaried class as insufficient. He has directed tax authorities to provide more meaningful relief to salaried individuals after consulting with the IMF.