IMF Mission Expected in Pakistan by March for First Review

Finance Minister Muhammad Aurangzeb said on Thursday that the International Monetary Fund (IMF) mission is likely to visit Pakistan by the end of February or early March for the first review of the $7 billion Extended Fund Facility (EFF). It bears mentioning that the IMF’s October report had scheduled the review for March 15, 2025. Aurangzeb told the Senate Standing Committee on Finance and Revenue that the government was committed to a bailout program. He said certain measures may be incorporated into the 2025-26 budget while more could be implemented later. He said plans were underway to separate tax policy from the Federal Board of Revenue’s (FBR) operations in the next fiscal year. The finance minister acknowledged that the salaried class faces disproportionate pressure. He assured that efforts are underway to simplify tax filing and reduce burdens where possible. The committee also discussed the potential introduction of a carbon tax. Aurangzeb said 1,100 Captive Power Plants out of 56,000 industrial units were affected by the recent gas price hike. Meanwhile, the Finance Secretary informed the committee that no new budget has been proposed for the Public Sector Development Program (PSDP) in 2025-26, but Rs. 3.1 billion has been allocated for five ongoing Finance Division projects. The committee also reviewed the effectiveness of longstanding FBR training programs and sought detailed reports on their outcomes.