IMF team arrives in Pakistan for 2026–27 budget talks

ISLAMABAD – An International Monetary Fund (IMF) delegation arrived in Pakistan to hold consultations with authorities on the federal budget for the fiscal year 2026–27, the officials said on Wednesday. The Ministry of Finance said that the formal discussions between the IMF mission and Pakistan’s economic team have begun, focusing on upcoming budget targets, tax revenue measures and broader fiscal reforms. The IMF delegation would remain in Islamabad until May 20 and is scheduled to hold a series of meetings with key institutions, including the Ministry of Finance, the Federal Board of Revenue (FBR) and the State Bank of Pakistan. The talks would review fiscal planning for the next financial year, including tax collection targets, energy sector reforms, progress on privatisation and measures aimed at strengthening overall financial discipline and governance. The sources said Pakistan is considering setting the tax revenue target for the next fiscal year at over Rs15 trillion, with discussions underway to finalise key macroeconomic indicators and budgetary frameworks. The IMF has also reportedly expressed concern over suspicious financial transactions and urged authorities to take stronger action against money laundering and improve regulatory enforcement. In addition, the delegation is expected to consult with the Ministry of Energy and other relevant departments on structural reforms in the power sector and state-owned enterprises. The officials said both sides would work on aligning revenue targets, expenditure planning and reform priorities ahead of the federal budget while also focusing on improving fiscal management and reducing government spending pressures. SBP receives $1.3 billion under IMF’s EFF and RSF programs