Pakistan, IMF open talks on budget finalisation

Paki­stan and the International Monetary Fund (IMF) opened high-level policy talks in Islamabad on Monday to discuss the upcoming federal budget for fiscal year 2025-26, officials said. The current round of discussions, which will continue till May 23, will help determine whether Pakistan’s proposed bud­get meets the fiscal and reform targets agreed with the IMF under the Exte­nded Fund Facility (EFF). An IMF delegation arrived earlier in Islamabad for the formal policy-level nego­t­­i­ations on budget final­isation, after last week technical discussions held via video link amid heig­htened tensions between India and Pakistan. The Islamabad talks focus on revenue targets, expenditure controls, and budgetary projections as Pakistan grapples with mounting fiscal and external financing pressures.