Prime Minister Shehbaz Sharif has established a high-powered political committee to oversee the implementation of the National Fiscal Pact, address rising debt concerns, and fast-track critical infrastructure development. The move comes amid pressure from the International Monetary Fund (IMF) and rising tensions between federal and provincial governments over fiscal responsibilities. The eight-member committee will be […]
International Monetary Fund (IMF)
IMF recommends $1bn climate support for Pakistan after reform success
ISLAMABAD, May 20, 2025 — The International Monetary Fund (IMF) has acknowledged Pakistan’s strong reform efforts under its Extended Fund Facility (EFF), noting that the country has met all key performance benchmarks as of December 2024. In its latest program review, the IMF highlighted “timely and strong implementation” of economic policies that are helping restore […]
Govt plans to raise petroleum levy over Rs100 per litre in IMF talks
The Pakistani government and the International Monetary Fund (IMF) have agreed to increase petroleum-related taxes in the next fiscal year. Sources say both sides discussed applying a Rs5 carbon levy on petroleum products. The proposal also includes raising the petroleum levy to more than Rs100 per litre. These steps aim to meet IMF revenue targets. […]
Govt shares captive power levy plan with IMF to cut electricity prices
The federal government has officially presented its plan to the International Monetary Fund (IMF) for reducing electricity prices using revenue from a newly introduced Captive Power Levy. According to estimates, the first phase will lower electricity rates by Rs0.90 per unit, offering relief amid inflation and rising utility costs. Initially, a 5% levy has been […]
Trump’s tariffs: IMF predicts marginal decline in Pakistan’s economic growth
The International Monetary Fund (IMF) has warned that the recent reciprocal tariffs imposed by the US under President Donald Trump will negatively impact Pakistan’s exports and economic growth. The IMF’s latest report stated that while the full effect remains uncertain, the tariffs will likely reduce Pakistan’s GDP growth, with a modest reduction in FY25 and […]
Second round of IMF budget talks begins, govt may offer tax relief to salaried class
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 […]
IMF warns of Rs1 trillion tax gap in Pakistan’s budget for 2025-26
The International Monetary Fund (IMF) has raised concerns over a major shortfall in Pakistan’s upcoming tax target. Pakistan plans to collect Rs14.3 trillion in taxes in the 2025-26 fiscal year. However, the IMF believes this target could fall short by over Rs1 trillion without strong new measures. The government must now either introduce more taxes […]
Nigeria clears IMF debt ahead of schedule, exits debtor list
Nigeria has officially paid off its $3.4 billion loan to the International Monetary Fund (IMF), becoming debt-free to the global financial institution. The repayment marks a major economic milestone, as the country clears a loan it took to manage the impact of the COVID-19 pandemic. This loan was granted in April 2020 under the IMF’s […]
IMF projects Pakistan’s revenue to hit Rs20 trillion in FY2025-26
Budget Talks Progress as IMF Stresses Spending Cuts and Climate-Tagged Subsidies The International Monetary Fund (IMF) has projected that Pakistan’s total revenue will rise to nearly Rs20 trillion in the fiscal year 2025-26. This is a significant increase from the current year’s estimate of under Rs17.8 trillion. The IMF, however, emphasized the need for tighter […]
PSX struggles for direction amid IMF budget talks
The Pakistan Stock Exchange (PSX) experienced a volatile trading session on Wednesday, with the benchmark KSE-100 Index closing marginally lower at 118,536.52 points—a decrease of 39.36 points or 0.03%. Earlier in the day, the index surged past the 119,000 mark, reaching an intraday high of 119,460.54 points, before profit-taking in key sectors led to a […]