{"id":74735,"date":"2025-05-18T14:04:38","date_gmt":"2025-05-18T09:04:38","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=74735"},"modified":"2025-05-18T14:04:38","modified_gmt":"2025-05-18T09:04:38","slug":"imf-pakistan-set-key-targets-for-budget-2025-26","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/imf-pakistan-set-key-targets-for-budget-2025-26\/","title":{"rendered":"IMF, Pakistan set key targets for budget 2025-26"},"content":{"rendered":"

ISLAMABAD: Pakistan‘<\/span>s federal budget for<\/span> 2025-26 is expected<\/span> to be<\/span> greater<\/span> than<\/span> PKR 17.6 trillion, and<\/span> to<\/span> collect<\/span> PKR 14,307 billion in tax revenues<\/span> by<\/span> the<\/span> Federal<\/span> Board<\/span> of<\/span> Revenue<\/span> <\/a>(<\/span>FBR<\/span>)<\/span>.<\/span><\/p>\n

The<\/span> documents state<\/span> that<\/span> the<\/span> discussions<\/span> between Pakistan and the International Monetary Fund<\/a> (IMF) are<\/span> still<\/span> underway,<\/span> but<\/span> significant<\/span> fiscal targets have<\/span> been<\/span> agreed<\/span>.<\/p>\n

In<\/span> the<\/span> FBR revenue strategy,<\/span> PKR 6,470 billion is<\/span> expected<\/span> from direct taxes, PKR 4,943 billion is<\/span> expected<\/span> from sales tax, PKR 1,741 billion from customs duty, and PKR 1,153 billion from federal excise duty.<\/p>\n

The petroleum levy is expected<\/span> to contribute<\/span> PKR 1,311 billion and<\/span> non-tax revenue of<\/span> PKR 2,584 billion, assisted<\/span> by a PKR 1,220 billion provincial<\/span> surplus<\/span>. All<\/span> of<\/span> this<\/span> is<\/span> intended<\/span> to reduce the fiscal deficit to 5.9pc<\/span> of GDP from 7.4pc<\/span> of<\/span> GDP<\/span> in the year.<\/p>\n

The<\/span> expenditures<\/span> include<\/span> PKR 8,685 billion for debt servicing and<\/span> apparent<\/span> contribution<\/span> for<\/span> interest payments, and PKR 2,414 billion for defense. The federal government plans<\/span> to allot<\/span> PKR 1,065 billion in<\/span> the Public Sector Development Programme (PSDP), with borrowing expected<\/span> to<\/span> be<\/span> PKR 6,588 billion for<\/span> the fiscal deficit<\/span>.<\/p>\n

The budget indicates<\/span> Pakistan‘<\/span>s willingness<\/span> to follow<\/span> the<\/span> IMF-driven reforms, including raising<\/span> the tax-to-GDP ratio by<\/span> 0<\/span>.<\/span>9<\/span>%<\/span> (<\/span>from 9.5% to 10.4%)<\/span>, and<\/span> the<\/span> prospect<\/span> of<\/span> economic stabilization is<\/span> cautiously<\/span> encouraging<\/span>.<\/span><\/p>\n

Previously<\/span>,<\/span> the<\/span> IMF requested<\/span> that<\/span> Pakistan<\/span> gradually move<\/span> away<\/span> from<\/span> federal funding for provincial development projects in<\/span> the Public Sector Development Programme. According to sources, the IMF formally<\/span> made this request<\/span> during virtual meetings<\/span> with the<\/span> provincial governments while<\/span> discussing<\/span> expenditure plans for the 2025-26 fiscal budget, where<\/span> provinces were<\/span> active<\/span> participants<\/span>.<\/p>\n

The IMF supported<\/span> this<\/span> demand<\/span> by<\/span> asking<\/span> provinces for<\/span> resources<\/span> and<\/span> to\u00a0stop<\/span> relying<\/span> on federal government<\/span> funding<\/span> or<\/span> revenues<\/span>;<\/span> they<\/span> suggested<\/span> implementing<\/span> an income tax on agricultural income<\/span> above\u00a0PKR 600,000 per<\/span> year,<\/span> starting July 1, 2025, will<\/span> no<\/span> longer<\/span> be<\/span> exempt<\/span>.<\/p>\n","protected":false},"excerpt":{"rendered":"

ISLAMABAD: Pakistan‘s federal budget for 2025-26 is expected to be greater than PKR 17.6 trillion, and to collect PKR 14,307 billion in tax revenues by the Federal Board of Revenue (FBR). The documents state that the discussions between Pakistan and the International Monetary Fund (IMF) are still underway, but significant fiscal targets have been agreed. […]<\/p>\n","protected":false},"author":9,"featured_media":23023,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[567,28642,13366],"class_list":["post-74735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-federal-board-of-revenue","tag-budget-2025-26","tag-international-monetary-fund-imf"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/74735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=74735"}],"version-history":[{"count":1,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/74735\/revisions"}],"predecessor-version":[{"id":74736,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/74735\/revisions\/74736"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/23023"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=74735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=74735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=74735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}