IMF Concludes Pakistan Visit, Budget Talks to Continue in Coming Days
Islamabad, May 24, 2025 — The International Monetary Fund (IMF) has wrapped up its latest visit to Pakistan but confirmed that discussions over the upcoming federal budget will continue in the coming days. The development holds significant importance for Pakistan’s economic future as the country seeks a new financial arrangement to stabilize its fragile economy.
The IMF mission arrived in Pakistan earlier this month to assess economic performance and negotiate terms for a potential new loan program, as the previous Extended Fund Facility (EFF) ended in 2023. During the visit, officials from the Ministry of Finance and the IMF reviewed key economic indicators including inflation, fiscal deficit, and tax revenue targets.
In a statement issued at the conclusion of the visit, the IMF acknowledged Pakistan’s efforts to manage a challenging economic environment but emphasized the need for more sustainable fiscal reforms. The fund highlighted the importance of broadening the tax base, reducing untargeted subsidies, and improving governance in the energy sector.
“Productive discussions were held with Pakistani authorities on the FY2025-26 budget and associated policies to ensure debt sustainability, inflation control, and growth revival,” said the IMF. “Talks will continue in the coming days to finalize details and explore pathways for a potential new program.”
The Pakistani government is expected to unveil its annual budget in early June, and a deal with the IMF is seen as crucial for restoring investor confidence and unlocking funding from other international partners. The budget will likely reflect structural reforms demanded by the IMF, including new taxation measures and spending controls.
Economic experts believe that continued IMF engagement will help Pakistan secure external financing and avoid a balance-of-payments crisis. However, there is public concern over potential austerity measures and increased fuel and electricity prices, which may affect the cost of living.
The Pakistani rupee remained relatively stable during the IMF visit, signaling cautious optimism among markets. However, long-term recovery depends heavily on whether the country can meet IMF benchmarks and implement reform commitments.
Pakistan’s Finance Minister expressed hope that a staff-level agreement would be reached soon. “We are working closely with IMF teams to build a budget that supports growth while meeting the fund’s requirements,” the minister stated.
The outcome of these negotiations will shape Pakistan’s fiscal direction in the next fiscal year. Observers are closely watching whether the government can balance economic reforms with political realities, especially as elections are expected later in the year.
As talks continue, citizens, investors, and international stakeholders await concrete outcomes that could determine the future of Pakistan’s economic stability.
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