The International Monetary Fund (IMF) said on Wednesday that it will now discuss the upcoming budget of Pakistan, as its mission in Islamabad has been delayed due to security concerns in the region. The federal government is planning to present the budget for FY 2025-26 on 2 June. According to PTI news, the International Monetary Fund talks will continue till 16 May. Government sources told The Express Tribune on Tuesday that the global lender has appointed a new mission head in Pakistan and is now expected to visit Islamabad in the weekend under the security situation of the mission.
Hope to be virtual discussion from today
According to the news, the IMF mission delayed its scheduled arrival due to uncertainty due to the ongoing struggle between India and Pakistan, which has affected air travel throughout the region. The source said that virtual discussion is expected from today. For the second and last phase of the conversation, the IMF team is expected to reach Islamabad on Saturday and stay by 23 May. IMF resident representative Mahir Binissi in Pakistan did not respond to a request for comment on changes in the travel plan.
Finance Ministry spokesman Kumar Abbasi also did not answer the questions asked about the change in the travel plan. Meanwhile, the IMF appointed Bulgarian -origin employee Eva Petrova as the new mission head in Pakistan. She will join the discussion with the outgoing mission head Nathan Porter – who served in the position for an extended period. Binissi also did not comment on whether both the outgoing and new mission major would attend both rounds of talks.
Fiscal policy is expected to be strict
Petrova, who holds a PhD degree in Economics from Michigan State University, is working as the IMF mission head in Armenia. Earlier, she has worked in the missions of Israel, Iceland and Latvia. In Pakistan, the fiscal policy is expected to be strict even in the next financial year. The IMF has asked Pakistan to make a budget on the perception of 1.6 percent primary budget surplus of GDP, which will require to generate about 2 trillion rupees in addition to non-onion expenditure. The tax target for the Federal Revenue Board (FBR) is proposed to be 11 percent or 14.3 trillion rupees of GDP.
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