Islamabad: According to Finance Ministry sources, the federal government is set to unveil the 2025-26 budget after comprehensive consultation with the International Monetary Fund (IMF).
Sources said that an IMF delegation is expected to visit Pakistan for further discussions in the coming weeks, both virtual and in-in-personal talks continue.
Slated budget for presentation in early June will include economic policies and fiscal measures as per IMF recommendations.
Officials revealed that the IMF has agreed to offer limited relief in the real estate sector. Under the new budget, the federal excise duty on the first property sale will be abolished, although the ban and income tax rates will remain unchanged.
The IMF Executive Board is estimated to approve these recommendations by the end of May or June, with the completion of the budget. Failure to follow the IMF conditions may endanger to reach access to Pakistan’s climate related financial aid.
The review of the board of Pakistan’s program is expected to be done only after finalizing the budgetary details, as the upcoming spring meetings in April will not include discussion on Pakistan’s financial assistance.
This development comes after Pakistan and reached a staff-tier agreement (SLA) for the first review of the 37-month expanded Fund Facility (EFF) running the IMF.
The deal will unlock about 1 billion dollars for Islamabad, pending final approval, which will make the total recharge under the program to be around 2 billion dollars.
