Pakistan to Seek Maximum Relief in Upcoming IMF Review Talks

The government is preparing to press for major relief measures during the upcoming review negotiations with the International Monetary Fund (IMF), with Prime Minister Shehbaz Sharif directing officials to secure the maximum possible concessions. Sources told ProPakistani that the government aims to avoid a mini-budget by presenting alternative revenue-enhancing measures focused on stricter enforcement of existing tax policies rather than imposing new levies. The Finance Ministry will also attempt to persuade the IMF to allow relief on account of the damages caused by recent floods. Officials are expected to seek concessions for flood-affected communities, including relief in electricity bills for September and relaxation in the repayment of agricultural loans. According to sources, Pakistan will also push for a downward revision in the Federal Board of Revenue’s tax collection target in light of shortfalls, as well as provide the IMF with a briefing on how floods have impacted tax revenue. Discussions are also expected on the possibility of slightly lowering the country’s economic growth target. The government will seek to ensure that no additional taxes are introduced, while also briefing the IMF on the potential increase in federal expenditures caused by flood-related damages.