The International Monetary Fund (IMF) mission is expected to visit Islamabad later this month for detailed discussions on Pakistan’s fiscal framework ahead of the federal budget for fiscal year 2026–27.

According to official sources, the IMF delegation is likely to arrive on May 13 or 14 to review the government’s proposed budgetary targets and broader macroeconomic assumptions for the upcoming fiscal year.

During the visit, Pakistani authorities are expected to brief the IMF team on key fiscal indicators, including the Federal Board of Revenue’s (FBR) proposed tax collection target and estimates for non-tax revenues.

The discussions are also expected to cover expenditure management and the government’s planned subsidy allocations for FY2026–27. Officials said Pakistan intends to take the IMF into confidence regarding subsidies planned for various sectors in the next budget.

However, the IMF has reportedly urged Pakistan to limit subsidies in order to maintain fiscal discipline and ensure compliance with reform commitments under the ongoing programme. The upcoming talks are being seen as crucial as Pakistan moves towards finalising its budget strategy amid continued economic stabilisation efforts and external financing needs.

In recent weeks, the IMF has also called on Pakistan to avoid broad-based fuel and energy subsidies, strengthen tax collection, expand the tax base, and ensure timely energy price adjustments to ease fiscal pressures.

The outcome of the discussions is expected to influence major budget decisions, including taxation measures, development spending, subsidy allocations, and fiscal deficit targets for FY2026–27.

Pakistan is currently implementing reforms under its IMF-supported programme aimed at stabilising foreign exchange reserves, controlling inflation, improving revenue mobilisation, and restoring investor confidence after prolonged economic challenges and external financing pressures.