The International Monetary Fund mission is expected to visit Islamabad later this month for detailed discussions on the country’s fiscal framework ahead of Pakistan’s federal budget for fiscal year 2026-27, sources in the Finance Ministry told ProPakistani.
According to official sources, the IMF mission is likely to arrive in Pakistan on May 13 or 14 to review the government’s proposed budgetary targets and macroeconomic assumptions for the upcoming fiscal year.
During the visit, Pakistani authorities are expected to brief the IMF delegation on key fiscal targets, including the Federal Board of Revenue’s proposed tax collection goal and estimates for non-tax revenues.
The discussions will also cover expenditure management and the government’s subsidy plans for FY2026-27.
Sources said the government intends to take the IMF into confidence over subsidies planned for various sectors in the next financial year.
However, the IMF has reportedly urged Pakistan to limit subsidies to maintain fiscal discipline and ensure compliance with reform commitments under the ongoing IMF programme. The upcoming talks are being viewed as highly significant as Pakistan moves closer to finalizing its budget strategy amid continued economic stabilization efforts and external financing requirements.
In recent weeks, the IMF has also pushed Pakistan to avoid broad fuel and energy subsidies, improve tax collection, expand the tax base, and maintain timely energy price adjustments to reduce fiscal pressures.
The discussions are expected to influence major budget decisions, including taxation measures, development spending, energy subsidies, and fiscal deficit targets for the next financial year.
Pakistan is currently implementing reforms under its IMF-supported programme aimed at stabilizing foreign exchange reserves, controlling inflation, improving revenue collection, and restoring investor confidence after years of economic stress and external financing challenges.
