• Both sides to continue discussions on revenue, defence, development, tariff reforms
• Next review likely in second half of 2025
• Mission thanks federal, provincial authorities for constructive engagement

ISLAMABAD: In a significant development, the International Monetary Fund (IMF) and Pakistani authorities have reached a preliminary agreement on a comprehensive financial framework, paving the way for continued negotiations on the budget for fiscal year 2025-26.

Officials in the finance ministry indicate that discussions are set to advance in the coming days, with the goal of finalising crucial fiscal policies, including the revenue collection target for FY26, development outlay, defence expenditure, and the highly debated tariff rationalisation plan for the industry.

The areas where agreements remain pending include tax concessions for the salaried class, an increase in defence budget and policies related to real estate. The discussions will also focus on reducing expenditures, as well........

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