The International Monetary Fund (IMF) has provided Pakistan with the Memorandum of Economic and Financial Policies (MEFP) after outlining key elements of the 2026–27 federal budget, authorities confirmed on Friday.
The MEFP is part of negotiations for the third review under Pakistan’s $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF), which could unlock further funding for the government.
Under the proposed framework, the IMF has set a tax collection target of Rs 15.08 trillion for the Federal Board of Revenue (FBR) in the 2026–27 budget. Meanwhile, the current fiscal year’s FBR target was revised down to Rs 13.4 trillion from Rs 13.79 trillion.
The Fund has also urged Pakistan to adjust petroleum, oil, and lubricant (POL) prices more frequently to better reflect fluctuations in international markets, moving beyond the recent shift from fortnightly to weekly reviews. Discussions are ongoing on the appropriate frequency of these adjustments.
Separately, analysts have warned that the ongoing Middle East crisis could pose risks to Pakistan’s trade, energy security, and external sector stability as global economic pressures mount.