Pakistan’s federal budget announcement has been pushed to June 10 due to ongoing IMF budget negotiations that remain unresolved. Initially slated for June 2, the delay reflects the government’s struggle to align its fiscal goals with IMF requirements under the ongoing loan programme.
Economic Survey Set for June 9
As per the finance ministry, the Economic Survey FY2025 will be released on June 9, just a day before the budget. This report outlines the performance of key sectors during the outgoing fiscal year and sets the stage for next year’s spending plan.
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No Breakthrough Yet in IMF Talks
Sources confirmed that Thursday marked the last scheduled day of discussions, but no consensus was reached. Talks resumed in the afternoon after a morning round, but both sessions ended without an agreement.
The finance secretary led Pakistan’s team, joined by top officials including the chairman of the Federal Board of Revenue (FBR). The delegation put forward multiple proposals aimed at easing the burden on salaried individuals and reducing industrial sector tax rates.
Tax Reforms and Revenue Proposals
Officials also proposed cuts in both development and non-development expenditures. The IMF was briefed on plans to enhance revenue, including agricultural income tax collection and new strategies for increasing provincial earnings.
Sources say the government is bound by IMF conditions and must include its input when setting fiscal targets. Talks will now continue into next week in hopes of reaching a final agreement.
Loan Review and Future Disbursements
Earlier this month, the IMF executive board approved a $1.4 billion loan for Pakistan under its climate resilience fund. It also signed off on the first review of a broader $7 billion programme, unlocking a $1 billion tranche.
The IMF acknowledged Pakistan’s efforts to stabilize its economy under tough conditions. So far, the country has received $2 billion from the 37-month programme, with more disbursements tied to successful policy reforms and final budget alignment.
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