Overview
- IMF mission chief Iva Petrova reported considerable progress but confirmed no staff-level agreement, with discussions set to continue in the coming days.
- Negotiators are close to revising the Federal Board of Revenue’s collection goal down to about Rs13.45 trillion for FY25/26, implying a tax-to-GDP ratio near 10.6% versus the 11% target.
- The IMF questioned plans to abolish the super tax and cut salaried-class rates without concrete offsetting measures, warning that one-off recoveries are not a durable base.
- Policy options raised by the IMF include aligning the rupee with the real effective exchange rate and an asset-based tax to bring traders into the net, which drew resistance from the FBR.
- The $1 billion tranche under the program remains pending as the Fund presses for fiscal consolidation, a tight monetary stance, and energy-sector reforms while weighing risks from higher global energy prices and regional conflict.