ISLAMABAD – The second round of budget talks between Pakistan’s economic team and the International Monetary Fund (IMF) has officially begun, with discussions focused on finalizing revenue and spending plans for the upcoming fiscal year. A key point of the talks includes potential income tax relief for salaried individuals.
According to sources, the government plans to negotiate a tax exemption for those earning between Rs1 million and Rs1.2 million annually. This proposal aims to ease the financial burden on the middle class and boost public support ahead of the new fiscal year.
The Pakistani delegation in the talks includes officials from the Ministry of Finance, the Federal Board of Revenue (FBR), the Planning Commission, the Economic Affairs Division, and the Ministry of Petroleum. Meanwhile, the State Bank of Pakistan is also scheduled to meet separately with the IMF team during this round.
Sources reveal that under the Prime Minister’s direction, the FBR is actively working to introduce relief measures in income tax policies. The current round of negotiations is expected to continue until May 23, with both sides aiming to finalize key budget elements by May 22.
The Ministry of Finance has confirmed that all budget proposals will be completed by next week. The government plans to present the full federal budget for the fiscal year 2025–26 on June 2, 2025.
This second phase of talks is seen as crucial for securing the next tranche of IMF funding. At the same time, it reflects the government’s effort to balance economic reforms with much-needed relief for Pakistan’s salaried population.