A delegation from the International Monetary Fund (IMF) begins formal discussions with Pakistani authorities today (Wednesday), focusing on the fiscal framework for the upcoming 2025–26 federal budget.
Finance Minister Muhammad Aurangzeb confirmed in an interview with Reuters earlier this week that the negotiations will run from May 14 to 23, with the government aiming to finalize the budget within the next three to four weeks. The new fiscal year begins on July 1.
The talks are expected to center on proposed revenue targets, expenditure planning, and broader fiscal strategy as Pakistan seeks to balance economic recovery with continued reform commitments under IMF-supported programs.
Key agenda items include updates on tax base expansion efforts, reforms in the energy sector, and the restructuring of state-owned enterprises (SOEs). According to sources familiar with the matter, the Pakistani side is also preparing proposals aimed at easing the tax burden on the salaried class—an issue likely to feature prominently in the negotiations.
The outcome of these discussions will shape Pakistan’s next federal budget and could influence the trajectory of future disbursements and support under ongoing IMF arrangements.