The Delegation of the International Monetary Fund (IMF) has arrived in Pakistan to begin high -level policy conversations about the country’s next federal budget for fiscal year 2025–26, authorities said on Monday.
According to the Ministry of Finance, the final negotiations will cover income, expenses and budgetary estimates objectives, said Express News.
The conversations are part of the efforts to stabilize the economy of Pakistan in the midst of increasing tax and external financing pressures.
The IMF team will remain in Islamabad until May 22. The discussions will involve senior officials of the Ministry of Finance, the Federal Income Board (FBR), the State Bank of Pakistan (SBP) and the Planning Commission.
Negotiations occur when Pakistan faces a growing external financing gap, which is expected to reach $ 19.75 billion in the next fiscal year. The gap is expected to remain above $ 19 billion in 2026–27 as well.
By 2027–28, it is anticipated that the country’s total external financial deficit will exceed 8.8 billion RS. Pakistan currency reserves can increase to $ 23 billion by that time, according to projections.
Despite this, income from privatization efforts is not expected until at least 2030, IMF sources said.
Remittances are expected to remain stable at around $ 36 billion, while the current account deficit will be kept nearly $ 3.85 billion.
