Pakistan’s IMF budget discussions have reportedly concluded, with the federal budget for FY2026-27 expected to be approximately Rs18 trillion, sources said.
Sources indicate both parties have agreed on key fiscal targets and policy measures. Virtual discussions between the Federal Board of Revenue and the IMF continue regarding tax relief proposals for the salaried class.
The IMF has reportedly agreed to lower the FBR’s tax target for the current fiscal year for a second time, reducing it from Rs13.979 trillion to Rs13.005 trillion, according to sources.
For FY2026-27, the federal government is expected to set an overall tax collection target of about Rs15.264 trillion.
Read: FBR Revenue Shortfall Widens To Rs868bn In 11 Months
This target comprises Rs7.413 trillion from direct taxes, Rs4.727 trillion from sales tax, Rs1.651 trillion from customs duties, and Rs1.043 trillion from Federal Excise Duty.
Sources report the Petroleum Development Levy target may increase to Rs1.727 trillion next fiscal year, up from Rs1.468 trillion this year.
Non-tax revenue is projected at approximately Rs2.768 trillion, with gas surcharge collections expected to contribute about Rs151 billion.
Debt servicing is expected to remain the largest federal expense. Sources estimate total interest and debt payments at Rs7.824 trillion, including Rs6.652 trillion for domestic debt and Rs1.107 trillion for foreign repayments.
The upcoming budget may introduce new tax measures totalling approximately Rs220 billion. The government is also considering adjustments to income tax slabs for salaried individuals.
The federal budget is expected to be presented in the coming days.
