Islamabad: The federal government is set to unveil the 2025-26 budget in early June, following extensive consultations with the International Monetary Fund (IMF), according to sources within the Ministry of Finance.
An IMF delegation is expected to visit Pakistan in the coming weeks for further discussions, with both virtual and in-person negotiations continuing until the budget’s finalization. The budget will incorporate fiscal measures aligned with IMF recommendations as part of Pakistan’s ongoing 37-month Extended Fund Facility (EFF).
Officials disclosed that while the IMF has agreed to offer limited relief in the real estate sector, the overall tax structure will remain largely unchanged. Under the new budget, the federal excise duty on the first property sale will be eliminated, but withholding and income tax rates will stay intact.
The IMF Executive Board is expected to review these budgetary measures by late May or June. Adherence to IMF conditions is crucial, as any deviation could impact Pakistan’s access to climate-related financial aid.
Meanwhile, the IMF’s upcoming Spring Meetings in April will not include discussions on Pakistan’s financial assistance. A final review of Pakistan’s economic programme will only take place once the budget is finalized.
This development follows the recent staff-level agreement (SLA) between Pakistan and the IMF, which, upon approval, would unlock approximately $1 billion in funding, raising total disbursements under the programme to around $2 billion.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
