WEBDESK: The IMF budget talks between Pakistan and the International Monetary Fund (IMF) are set to continue after a recent staff-level visit to Islamabad concluded. Led by IMF Mission Chief Nathan Porter, the team held detailed meetings with Pakistani authorities to assess the country’s economic progress and finalize plans for the 2026 fiscal year.
In a statement issued on Saturday, the IMF’s Pakistan mission chief Nathan Porter termed the recent IMF budget talks “constructive” and said: “We will continue discussions towards agreeing over the authorities’ FY26 budget over the coming days.”
During the five-day visit, the IMF team and government officials focused on key issues, including revenue generation, responsible spending, and debt management. A primary goal of the IMF budget talks was to ensure a primary budget surplus of 1.6% of GDP in the upcoming fiscal year. The talks also emphasized the importance of protecting social and development spending despite the need for fiscal discipline.
At the end of the visit, Porter said in a statement, “We held constructive discussions with the authorities on their FY2026 budget proposals, as well as the broader economic policy and reform agenda supported by the 2024 Extended Fund Facility (EFF) and the 2025 Resilience and Sustainability Facility (RSF)”.
“We will continue discussions towards agreeing over the authorities’ FY26 budget over the coming days”, the statement noted.
Shedding light on other matters reviewed, Porter said: “Discussions also covered ongoing energy sector reforms aimed at improving financial viability and reducing the high-cost structure of Pakistan’s power sector as well as other structural reforms which will help foster sustainable growth and promote a more level playing field for business and investment.”
The IMF team stressed the need for a strong and independent monetary policy that can control inflation. The goal is to bring inflation down to the State Bank of Pakistan’s target range of 5–7% in the medium term. Rebuilding foreign exchange reserves and maintaining a market-driven exchange rate were also discussed as key measures to protect the economy from external shocks.
The IMF budget talks come at a critical time, as Pakistan works to stabilize its economy and avoid future crises. The IMF praised the cooperation shown by Pakistani authorities and expressed optimism that further progress can be made in the coming days.
A formal IMF mission is expected in the second half of 2025 to assess the implementation of the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). Until then, the IMF budget talks will continue as both sides aim to finalize a realistic and sustainable fiscal plan for Pakistan.
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