The delegation of the International Monetary Fund (IMF) arrived in Pakistan to start high-level political talks on the country’s next federal budget for the year 2025-26, officials announced on Monday.
According to the Ministry of Finance, the final negotiations will cover income targets, expenses and budgetary estimates, Express News reported.
Translections are part of the efforts to stabilize the economy of Pakistan in the midst of budgetary and external financial pressures.
The IMF team will remain in Islamabad until May 22. The discussions will involve senior officials from the Ministry of Finance, the Federal Board of Return (FBR), the State Bank of Pakistan (SBP) and the planning commission.
Negotiations arise while Pakistan faces a growing external financing lake, which is expected to reach $ 19.75 billion in the next financial year. The gap should also remain above $ 19 billion in 2026-2027.
By 2027-2028, the country’s total external financial deficit should exceed 8.8 billions of rupees. Pakistan exchange reserves could reach $ 23 billion at that time, said projections.
Despite this, no income is expected of privatization efforts until at least 2030, IMF sources said.
Shipments of funds should remain stable at around $ 36 billion, while the current account deficit should remain nearly $ 3.85 billion.
