IMF sets budget and tax targets in fresh Pakistan talks

Pakistan has received the Memorandum of Economic and Financial Policies from the International Monetary Fund as both sides move forward on the next stage of programme negotiations tied to the country’s financing arrangements.

The report says the IMF has outlined its expectations for the 2026-27 budget, including a proposed Federal Board of Revenue tax target of Rs15.08 trillion. It also notes that the current fiscal year’s revenue target has been revised downward.

Another major issue in the discussions is petroleum pricing. The IMF wants Pakistan to adjust petroleum, oil and lubricant prices more quickly so domestic rates reflect international market movements with less delay.

The wider economic context remains tense, with Pakistani analysts warning that prolonged disruption in the Gulf region could damage exports, raise the import bill, pressure reserves and push inflation higher. The article frames the IMF discussions as taking place at a time of mounting external vulnerability for Pakistan’s economy.