IMF Directs Pakistan to Finalize Budget for FY 2025-26 Under Staff-Level Agreement, Parliament Approval by June End

The **International Monetary Fund (IMF)** has directed the **Government of Pakistan** to prepare the upcoming **fiscal year 2025-26 budget** strictly in line with the conditions outlined in the **staff-level agreement**, and to ensure its **approval from Parliament before the end of June**.

According to official sources, the IMF has made it clear that the preparation and passage of the budget must align with the **pre-agreed targets**, labeling this requirement as a **fundamental condition** of the broader agreement. In this context, the government has strategically decided to convene **key budgetary meetings immediately after Eid holidays** to stay on schedule.

Officials further revealed that the IMF has insisted on a **comprehensive plan to impose taxes on agricultural income**, which is also among the core conditions for the deal. The ongoing discussions between the government and the IMF focus on **budget structure, revenue and expenditure projections, and tax reforms**—areas where mutual consensus is mandatory for any implementation to proceed.

Sources added that the government is in the final stages of **shaping the budget in accordance with IMF requirements**, aiming to swiftly conclude the **staff-level agreement**, which would in turn pave the way for **Pakistan’s entry into a new financial assistance program**.

The pressure to comply reflects Pakistan’s ongoing efforts to stabilize its economy and secure much-needed international support in the face of **persistent fiscal challenges**.