Pakistan IMF budget talks are continuing as both sides negotiate key fiscal reforms for the upcoming financial year. The discussions are focused on tax targets, energy pricing, and social protection spending. According to sources, most issues have been agreed upon, while a few major points remain under review.
During the Pakistan IMF budget talks, the International Monetary Fund has proposed an 18 percent increase in the petroleum levy target. Currently, the petroleum levy stands at 108 rupees and 17 paisa per litre. Additionally, the IMF has pushed for stronger revenue collection measures to reduce fiscal pressure.
Another key part of the Pakistan IMF budget talks includes provincial revenue targets. The IMF has asked provinces to collect an additional 430 billion rupees. It has also demanded nearly 2 trillion rupees in surplus transfers to the federal government to support financial stability.
Social protection reforms were also discussed in the Pakistan IMF budget talks. Sources indicate that the Benazir Income Support Programme may be increased from 14,500 to 18,000 rupees. However, some adjustments are still being reviewed before final approval.
Tax policy reforms remain central in the Pakistan IMF budget talks. The Federal Board of Revenue has been given a target of 15,264 billion rupees for the next fiscal year. Moreover, half-year targets have also been set to ensure steady revenue performance.
The IMF mission is currently in Pakistan to finalize budget proposals. It has also recommended additional tax measures worth 430 billion rupees. Economic growth is projected at 3.5 percent, while inflation is expected to remain around 8.4 percent.
Further discussions in the Pakistan IMF budget talks include energy pricing and industrial incentives. Gas and electricity prices may be adjusted twice a year under the proposed plan. Tax exemptions in special economic zones may also be phased out by 2035 to improve long-term revenue collection.
