IMF mission to visit Pakistan next month to finalise FY2027 budget

The International Monetary Fund (IMF) is expected to send a mission to Pakistan next month to finalise the federal budget for FY2026-27, with a proposed tax collection target of Rs15.564 trillion under discussion, The News reported. 

The government has initiated consultations to shape the upcoming budget, taking into account recent geopolitical developments. Finance Minister Muhammad Aurangzeb has held meetings with the Pakistan Business Council and the Overseas Investors Chamber of Commerce and Industry, while discussions have also been held with the All Pakistan Textile Mills Association to address concerns over rising logistics and freight costs.

Officials indicated that domestic policymakers are considering setting a lower Federal Board of Revenue target in the range of Rs15.232 trillion, given challenges in meeting the current fiscal year’s target of Rs13,979 billion.

The FBR is also proposing adjustments in tax policy, including a reduction in super tax rates and relief for salaried individuals in the next budget.

In addition, the government is preparing to request the IMF to allow withdrawal of certain withholding taxes, particularly in cases where refund claims have accumulated significantly.