An International Monetary Fund (IMF) delegation has arrived in Islamabad to begin high-level talks focused on shaping Pakistan’s federal budget for the 2025–26 fiscal year, officials confirmed on Monday.
The team is scheduled to stay in the country until May 22 as part of critical discussions aimed at addressing Pakistan’s economic challenges, particularly its fiscal and external financing pressures.
According to media reports the Ministry of Finance, the talks will focus on finalizing revenue targets, government spending plans, and overall budgetary projections.
Senior representatives from the Ministry of Finance, the Federal Board of Revenue (FBR), the State Bank of Pakistan (SBP), and the Planning Commission will participate in the discussions.
These negotiations come at a time when Pakistan is facing a significant external financing gap, expected to hit $19.75 billion in the upcoming fiscal year. That shortfall is projected to remain above $19 billion through 2026–27.
By the 2027–28 fiscal year, Pakistan’s total external financing gap could exceed Rs 8.8 trillion. However, the country’s foreign exchange reserves are projected to rise to $23 billion by then.
Despite the pressing need for financial resources, IMF sources indicated that no revenue is anticipated from privatisation initiatives before 2030.
Meanwhile, remittances are expected to hold steady at approximately $36 billion, and the current account deficit is forecast to hover around $3.85 billion.
