Policy-level negotiations between Pakistan and the International Monetary Fund (IMF) on the budget proposals for fiscal year 2025-26 are set to start tomorrow which will continue until May 23, reported 24NewsHDTV Channel.
Sources said Finance Ministry’s team will share various proposals with international lenders to offer relief to the salaried class. The IMF team will urge need for alternative revenue measures to offset any concessions.
The talks come amid concerns raised by the IMF in its recent report on Pakistan’s external financial needs, said that although Pakistan’s debt repayment capacity has improved but the risks persist.
The IMF team will urge Pakistan not to offer more subsidies which may jeopardize the country’s fragile economic stability.
According to the IMF, Pakistan faces an external financing requirement of $19.3 billion in the next fiscal year alone. The need may rise to $19.75 billion in 2026-27, followed by $31.35 billion in 2027-28 — the largest demand over the five-year outlook. Further external financing requirements include $23.13 billion in 2028-29 and $22.16 billion by 2030.