Pakistan in Negotiations with IMF for New Budget and Program
The Pakistani government is engaged in crucial negotiations with the International Monetary Fund (IMF) for a new bailout program and the upcoming federal budget. The IMF mission is reportedly pushing for an increase in the Benazir Income Support Programme (BISP) stipend to Rs 20,000. Discussions have also focused on FBR’s tax collection targets and a management plan for the gas sector’s circular debt, which has reportedly reached Rs 3,440 billion. The government has assured the IMF it will prioritize ongoing projects, allocating less than 10% of funds to new initiatives due to financial constraints.
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Updated: 2:01 AM PKT — May 19, 2026
As part of the ongoing budget discussions, the International Monetary Fund has also advised the government against abolishing the Super Tax currently levied on corporations. This guidance comes in addition to previously reported demands regarding new tax measures and collection targets.
Updated: 11:27 PM PKT — May 18, 2026
The International Monetary Fund has reportedly demanded an increase in the Benazir Income Support Programme stipend from its current level of Rs. 14,500. In an effort to broaden the tax base, the government is also considering proposals to eliminate sales tax exemptions on various goods and services.
Updated: 10:50 PM PKT — May 18, 2026
The proposed increase in the Benazir Income Support Programme stipend would raise the amount from its current level of Rs. 14,000. Additionally, discussions around the elimination of sales tax exemptions have specifically included the property sector.
Updated: 10:15 PM PKT — May 18, 2026
As negotiations enter their final phase, the IMF is reportedly pushing for the imposition of up to Rs. 500 billion in new taxes and a collection target of Rs. 15.24 trillion. Key demands also include the elimination of various sales tax exemptions and the maintenance of the super tax on large corporations.
