Pakistan-IMF talks on budget continue, FBR seeks tax concession

Pakistan and International Monetary Fund (IMF) opened high-level policy talks to discuss the upcoming federal budget for fiscal year 2025-26. 

According to Ministry of Finance’s sources the Federal Bureau of Revenue (FBR) has requested tax concessions from the IMF for various sectors to boost economic recovery. 

The IMF will take a decision on concessions demands after looking at the data and strategy. The IMF has not yet rejected any tax concessions. 

According to Ministry of Finance, consultations continue with the IMF on the budget targets for the next fiscal year and yet no terms have been agreed with the IMF. 

The Ministry of Finance has provided data to the IMF and the government was also holding talks with IMF on concessions for the real estate sector. 

The IMF has demanded of the provinces to reduce their expenses and increase their income. The global lender has demanded that measures be taken to collect tax on agricultural income. Earlier, Finance Minister Aurangzeb met with the IMF delegation. IMF Director Jihad Azour was leading the delegation. 

The Finance Minister briefed the IMF delegation on the budget proposals. According to Finance Ministry officials, the government is working on an economic reform agenda and the IMF program will be fully implemented.