Pakistan will not introduce a mini-budget before June as the International Monetary Fund (IMF) has expressed satisfaction with the country’s economic measures, Express News reported on Friday. The final round of policy-level talks between Pakistan and the IMF is set to conclude today.
Finance Minister Ishaq Dar is scheduled to meet the IMF delegation today, followed by an iftar dinner in their honor. The global lender will then prepare an assessment report for its Executive Board, which will decide on releasing the next $1 billion tranche for Pakistan.
Key agenda items in the final discussions include Pakistan’s budgetary targets, fiscal performance, and tax collection shortfalls. While the IMF has acknowledged progress, it has urged Pakistan to remove tax exemptions on solar panels and electric vehicles, arguing that these primarily benefit wealthier segments. The lender has also pressed for stricter fiscal discipline and the elimination of tax breaks on EV parts.
Separately, Pakistan has requested the IMF to allow tax cuts in line with regional countries to curb capital flight, though the lender remains concerned over revenue collection from retailers and real estate. The IMF has also warned against pursuing rapid economic growth, cautioning that it could strain fiscal and external balances.
