IMF team arrives in Pakistan for key budget talks

International Monetary Fund (IMF) delegation has arrived in Pakistan to begin high-level policy talks on the country’s upcoming federal budget for the 2025–26 fiscal year, officials said on Monday.

According to the Ministry of Finance, final negotiations will cover revenue targets, expenditures, and budgetary estimates, Express News reported.

The talks are part of efforts to stabilise Pakistan’s economy amid mounting fiscal and external financing pressures.

The IMF team will remain in Islamabad until 22 May. The discussions will involve senior officials from the Ministry of Finance, the Federal Board of Revenue (FBR), the State Bank of Pakistan (SBP), and the Planning Commission.

The negotiations come as Pakistan faces a growing external financing gap, which is expected to reach $19.75 billion in the next fiscal year. The gap is projected to remain above $19 billion in 2026–27 as well.

By 2027–28, the country’s total external financial shortfall is anticipated to surpass Rs 8.8 trillion. Pakistan’s foreign exchange reserves may rise to $23 billion by that time, according to projections.

Despite this, no income is expected from privatisation efforts until at least 2030, IMF sources said.

Remittances are expected to remain stable at around $36 billion, while the current account deficit is forecast to stay close to $3.85 billion.