ISLAMABAD: An International Monetary Fund (IMF) team will begin its visit to Pakistan on Friday to assist in the preparation of the federal budget for the fiscal year 2025-26.

Sources reveal that the IMF delegation will engage in talks with Pakistani officials on various budget-related matters. These include future tax measures, revenue strategies, and controlling expenditures, particularly focusing on the allocation for development spending.

The discussions will play a crucial role in shaping Pakistan's budget proposals for the upcoming fiscal year. The federal budget for FY2025-26 is expected to be presented in the first week of June. The IMF's assistance is aimed at ensuring that the budget aligns with Pakistan's economic goals and satisfies the requirements outlined in the agreements with the international lender. The Ministry of Finance has set a target for the Federal Board of Revenue (FBR) to collect Rs15,270 billion in taxes for the upcoming fiscal year. This represents an increase of Rs2,300 billion compared to the current fiscal year's target.

The FBR's tax collection for FY2024-25 is projected to be Rs9,311 billion, with direct tax collections targeted at Rs6,570 billion. Earlier, the federal government took steps to fulfill another IMF condition by approving the establishment of new offices within the FBR. These offices will focus on addressing tax evasion and improving coordination between field formations to boost revenue collection.

Finance Minister Muhammad Aurangzeb recently confirmed that talks between Pakistan and the IMF for a $1 billion loan tranche had been successful. This progress aligns with the ongoing negotiations to finalize Pakistan's budget and economic policies.