- Next fiscal year’s budget to be finalised after IMF consultations.
- IMF agrees to remove federal excise duty on first property sale
- Pakistan risks losing climate funding if deal terms not met.
ISLAMABAD: The federal government will present the budget for the fiscal year 2025-26 after consultations with the International Monetary Fund (IMF), sources said.
The sources in the Ministry of Finance told Geo News on Thursday that another IMF delegation is expected to visit Pakistan soon for discussions.
According to officials, both in-person and online consultations with the IMF will continue before finalising the budget, which is set to be presented in the first week of June.
The discussions will cover key economic policies and revenue measures required to align with the IMF’s recommendations.
The sources also revealed that the IMF has agreed to provide limited relief in the real estate sector. Under the new budget, the federal excise duty on the first sale and purchase of property will be removed, while the existing withholding and income tax rates will remain unchanged.
Similarly, the tax rate on property sellers will also stay the same.
As per the ongoing IMF agreement, the lender’s Executive Board is expected to approve recommendations by late May or June, by which time the budget will already be prepared.
However, if Pakistan fails to comply with the agreement, it may lose access to climate-related financial assistance.
The IMF Executive Board meeting to review Pakistan’s programme will only be scheduled after budget details are finalised. Due to the upcoming Spring Meetings in April, the board will not discuss Pakistan’s programme during that period.
The development follows the staff-level agreement (SLA) reached between the Washington-based lender and Pakistani authorities concerning the first review of the ongoing 37-month bailout programme.
The deal, awaiting IMF’s Executive Board’s approval, will see Islamabad securing access to approximately $1 billion under the Extended Fund Facility (EFF), bringing total disbursements under the programme to around $2 billion.
