KARACHI – No mini-budget will be introduced before June, as the IMF has expressed satisfaction with Pakistan’s economic measures, according to Express News.
The final day of negotiations between Pakistan and the IMF wraps up today, following technical sessions and policy-level discussions.
Once talks conclude, the IMF will prepare an assessment report for its Executive Board, determining the release of the next $1 billion tranche for Pakistan.
Today’s agenda includes reviewing budget targets, evaluating the current fiscal year’s performance, and addressing the tax shortfall. Both sides aim to finalize proposals before closing the negotiations.
Pakistan has largely met IMF targets and provided all required economic data. However, the IMF pushed for removing tax exemptions on solar panels and electric vehicles, viewing them as luxury items for the wealthy. It also called for ending tax breaks on EV parts and stricter fiscal discipline.
During Thursday’s talks, Pakistan urged the IMF to allow tax cuts aligned with regional countries to curb capital flight. The IMF, however, noted limited progress in taxing retailers and real estate sectors.
The IMF briefed foreign diplomats on the first review’s outcome, expressing satisfaction with the program’s implementation, except in property, real estate, and privatization matters.
The global lender supported gradual economic growth, cautioning against a rapid shift that could widen fiscal and current account deficits.
The IMF delegation is expected to depart after finalizing agreements, shaping the next phase of Pakistan’s economic program.
