IMF mission arrives in Pakistan for talks on FY2026-27 budget

ISLAMABAD: A mission of the International Monetary Fund (IMF) has arrived in Pakistan for talks on the federal budget for the fiscal year 2026-27, officials said on Wednesday.

Talks between the IMF delegation and the Ministry of Finance Pakistan have begun, focusing on new budget targets, tax revenue measures and broader fiscal reforms.

Officials said the mission would remain in Pakistan until May 20.

During the week-long engagement, the IMF team is scheduled to hold meetings with the finance ministry, the Federal Board of Revenue (FBR) and the State Bank of Pakistan, alongside discussions with other economic and energy-related institutions.

Key areas under review include budgetary targets for the new fiscal year, tax collection, fiscal consolidation, energy sector reforms and progress on the government’s privatisation programme.

Sources said that Pakistan was considering setting a tax revenue target of more than 15 trillion rupees for the next fiscal year.

The talks will also cover proposals for development spending, improving fiscal discipline, and aligning government expenditures with broader macroeconomic stability goals.

Officials said consultations would also include coordination with the Ministry of Energy and other departments on structural reforms.

The IMF engagement comes as Pakistan continues to implement reforms under its ongoing programme aimed at stabilising the economy and improving fiscal management.

Earlier, Pakistan received $1.3 billion from the IMF following approval by its executive board under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), the State Bank of Pakistan said.

The inflow is expected to support foreign exchange reserves and reinforce ongoing macroeconomic stabilisation efforts.