ISLAMABAD: Pakistan and the International Monetary Fund (IMF) remain in disagreement over key budget targets and the broader macroeconomic framework, according to official privy to the development.
Negotiations between the two sides are ongoing, with the IMF reportedly pressing for increased tax collection at both federal and provincial levels. The Fund has also called for provincial revenues to rise by nearly 40 percent in the upcoming fiscal year.
Sources said the government has proposed a GDP growth target of 4.1 percent for the next financial year, while the IMF has projected growth at around 3.5 percent, reflecting a more cautious economic outlook.
Discussions are also underway regarding fiscal consolidation measures, with the IMF pushing for a higher primary surplus target equivalent to 2 percent of GDP.
Meanwhile, concerns persist over external and fiscal pressures, with projections indicating that the current account deficit could widen to around 4 billion dollars. Imports are expected to reach approximately 70 billion dollars, raising further concerns about the trade deficit.
Officials also noted that remittance inflows are expected to remain a key source of external stability, with projections suggesting they could exceed 42 billion dollars in the next fiscal year.
Talks between Pakistan and the IMF are expected to continue as both sides work toward finalizing the budget framework and macroeconomic targets for the upcoming financial year.
