The International Monetary Fund (IMF) has instructed the Pakistani government to draft the upcoming 2025–26 federal budget strictly in accordance with the conditions outlined in the recently reached Staff-Level Agreement (SLA). The Fund has also stressed the importance of securing parliamentary approval for the budget by the end of June.
According to official sources, the IMF has made it clear that full alignment of the budget with agreed performance targets is a core requirement for the continuation of the current loan program. The Fund has particularly emphasized the need for a comprehensive taxation plan, including the imposition of new taxes on agricultural income — a longstanding point of contention.
Officials noted that the government will convene a high-level budget planning meeting following the Eid holidays to finalize the framework in line with IMF conditions. They added that no part of the deal would proceed without consensus on the budget’s structure, revenue generation targets, and expenditure plans.
The government is actively working to meet these requirements to ensure the swift conclusion of the SLA and pave the way for a new financial assistance program from the IMF.
