Finance Minister Muhammad Aurangzeb announced on Thursday that an International Monetary Fund (IMF) mission is expected to visit Pakistan by late February or early March for the first review of the $7 billion Extended Fund Facility (EFF). The review was originally scheduled for March 15, 2025, according to the IMF’s October report.

Speaking at a meeting of the Senate Standing Committee on Finance and Revenue, Aurangzeb reaffirmed the government’s commitment to the IMF bailout program. He indicated that certain measures tied to the program may be incorporated into the 2025-26 budget, with additional reforms to follow in subsequent years.

The finance minister also highlighted plans to separate tax policy from the Federal Board of Revenue (FBR) in the next fiscal year, allowing the FBR to focus solely on tax collection. He acknowledged the disproportionate tax burden on the salaried class and assured that efforts are underway to simplify tax filing and provide relief where possible.

The committee also discussed the potential introduction of a carbon tax. Aurangzeb noted that 1,100 Captive Power Plants out of 56,000 industrial units have been impacted by the recent gas price hike.

Meanwhile, Finance Secretary Hamed Raza informed the committee that no new budget has been proposed for the Public Sector Development Program (PSDP) in 2025-26. However, Rs. 3.1 billion has been allocated for five ongoing projects under the Finance Division.