Pakistan and the International Monetary Fund (IMF) have begun a new round of talks in Islamabad for the fourth review of the country’s Extended Fund Facility and the third review of its climate-change program, according to the Ministry of Finance.
Finance Minister Muhammad Aurangzeb attended the opening session with the IMF mission, led by Eva Petrova, briefing it the government’s measures to maintain economic stability.
Technical-level discussions have also started between the Finance Ministry and the IMF, with a special session held with the Federal Board of Revenue (FBR) to review tax collection and fiscal performance through June 30, 2026. The FBR collected Rs. 13.01 trillion in taxes during the fiscal year ended June 30, according to the briefing to the IMF.
The budget deficit stood at 2.9% of gross domestic product at the end of the last fiscal year, while the primary surplus reached Rs. 3.634 trillion, in line with the agreed target, according to officials familiar with the discussions.
Non-tax revenue totaled Rs. 5.554 trillion through June 30, 2026, the officials added.
Petroleum levy collections exceeded the target by Rs. 99 billion during the last fiscal year. The government had set a petroleum development levy target of Rs. 1.468 trillion for the year but collected Rs. 1.567 trillion through June 30, the officials said.
The IMF also held a special session with the Establishment Division, discussing issues relating to the assets and income tax returns of government officials, according to officials. The IMF is seeking access for the FBR to bank-account information of all government officers from grades 17 through 22 and public officeholders, the officials said.
The discussions also include proposed access to bank-account information by anti-money laundering authorities, the Financial Monitoring Unit and the State Bank of Pakistan, they said.
The latest talks are part of the IMF’s ongoing review of Pakistan’s economic reform program under the EFF arrangement and its climate-related financing program.