Pakistan to Begin IMF Talks on 2026–27 Budget

Pakistan is set to begin negotiations with the International Monetary Fund (IMF) next week over the 2026-27 federal budget.
The government plans to request lower income tax rates for salaried and middle-income groups, along with possible reductions in corporate taxes. It is also considering proposals to abolish the super tax and capital value tax, though these measures depend on IMF approval. The IME, however, is expected to push for strict fiscal discipline, increased revenue measures, and controlled public spending. Discussions may also include potential adjustments in power subsidies. Both sides will focus on improving tax collection, reducing the fiscal deficit, and meeting budget targets under tight economic conditions.