The International Monetary Fund (IMF) is expected to send its mission to Pakistan next month to assist in finalizing the federal budget for FY2026–27, with discussions likely to focus on revenue targets and tax reform measures.
Under the current framework, the IMF is considering a Federal Board of Revenue (FBR) tax collection target of Rs. 15.564 trillion for the next fiscal year, setting a challenging benchmark for the country’s fiscal planning.
Finance Minister Muhammad Aurangzeb has already held initial consultations with the Pakistan Business Council and the Overseas Investors Chamber of Commerce and Industry to gather input from the business community and foreign investors as part of preparations for the upcoming budget.
Separately, the minister of state for finance and the prime minister’s adviser on industries met representatives of the All Pakistan Textile Mills Association to discuss concerns over rising logistics and freight costs. Officials said the pressures have increased due to recent regional tensions and related disruptions, which could affect industrial competitiveness and export performance.
Officials involved in budget planning are said to favor keeping the FBR’s tax target closer to Rs. 15.232 trillion, citing concerns that the tax machinery may face difficulties in meeting the current fiscal year’s collection goal of Rs. 13.979 trillion, making a significantly higher target harder to sustain.
At the same time, the FBR is proposing tax relief measures in the upcoming budget. Key proposals under discussion include a reduction in the Super Tax rate and easing the tax burden on the salaried class, both of which remain major concerns for businesses and individuals.
Officials also said the government may approach the IMF during its May 2026 mission to seek withdrawal of certain withholding taxes, particularly those categories where refund claims have accumulated significantly. The move is aimed at easing cash flow pressures on businesses and improving the overall tax administration framework.
