The federal government is aiming to meet budget targets ahead of the anticipated arrival of the International Monetary Fund (IMF) review mission in Pakistan. Negotiations for a new loan program are expected to begin in mid-May.
Finance ministry sources stated that ministries have been directed to achieve the targets before the start of negotiations for the new loan program. They mentioned that the specifics would be provided to the IMF delegation once all key targets were achieved.
It has also been decided to seek approval for the budget strategy paper from the federal cabinet before the IMF review mission arrives in the country.
According to the sources, the finance ministry has commenced preparations for the budget, which will include setting targets for debt repayment, defense budget, tax collections, as well as development and ongoing budget targets.
After the successful completion of the short-term $3 billion bailout package, a schedule was agreed upon between Pakistan and the IMF for discussions on a new major loan program.
Discussions for a fresh bailout are expected to begin in mid-May when the IMF delegation is scheduled to visit Pakistan. The IMF team is expected to stay in Islamabad for two weeks.
