The International Monetary Fund (IMF) is set to dispatch a mission to Pakistan next month to review and finalize key parameters of the federal budget for fiscal year 2026–27, including revenue targets and tax policy measures.
According to official sources, the IMF is expected to propose a Federal Board of Revenue (FBR) tax collection target of Rs15.564 trillion for the upcoming fiscal year. The government, however, is considering a slightly lower target of around Rs15.232 trillion, given concerns over revenue mobilization capacity.
The development comes as the government has initiated early consultations with stakeholders in light of evolving geopolitical and economic conditions. Finance Minister Muhammad Aurangzeb has held preliminary meetings with business bodies, including the Pakistan Business Council and the Overseas Investors Chamber of Commerce and Industry, while discussions with the textile sector have focused on rising logistics and freight costs linked to regional instability.
Officials acknowledge that the current fiscal year’s revenue target of Rs13,979 billion is unlikely to be fully achieved, prompting a reassessment of fiscal projections for the next budget cycle.
The FBR has reportedly proposed reductions in super tax rates as well as tax relief for the salaried class in the upcoming budget. In addition, the government is exploring options to engage the IMF on withdrawing certain withholding taxes, particularly in areas where refund backlogs have accumulated significantly.
The upcoming IMF mission is expected to play a central role in shaping Pakistan’s fiscal framework for 2026–27, with negotiations likely to focus on revenue generation, tax reforms, and measures to stabilize the broader economy.