Pakistan, IMF Near Agreement on Revised Economic and Fiscal Framework for Current Fiscal Year

Islamabad** — Pakistan and the **International Monetary Fund (IMF)** are close to reaching an agreement on a revised economic and fiscal framework for the current fiscal year.

Under the framework, the **Federal Board of Revenue (FBR)**’s tax collection target has been reduced to **₨134.5 trillion** by June 2026. Virtual negotiations are ongoing between IMF and Pakistani officials to finalize a staff-level agreement under the **$7 billion Extended Fund Facility (EFF)**.

There are concerns that FBR may fail to achieve the IMF-set **tax-to-GDP ratio of 11%** for fiscal year 2025–26. In the first eight months of the current fiscal year, tax collections fell short by **₨428 billion** compared to the revised target.

The revised framework aims to balance fiscal consolidation with economic growth while ensuring Pakistan meets the commitments under the IMF program.