ISLAMABAD: Federal Minister for Planning Ahsan Iqbal stated on Saturday that there is no pressure from the International Monetary Fund (IMF) regarding the upcoming federal budget. He also confirmed that the defence budget will be increased and public relief measures will be included.
Speaking to a delegation led by Institution of Engineers Pakistan Secretary General Ameer Zamir, Iqbal said the IMF is satisfied with the government’s policies, and there is no external pressure influencing budget decisions.
He assured that the government aims to provide relief to citizens and will avoid any actions that could impact national unity or harmony. Given the prevailing security situation, he said the defence allocation will see an increase.
Iqbal further emphasized the importance of completing key water infrastructure projects, including the Diamer-Bhasha Dam, without delay to prevent India from taking advantage of any setbacks. He said these projects will receive priority funding.
Meanwhile, a spokesperson for the Ministry of Finance confirmed that the federal budget will now be presented on June 10, instead of the initially planned date of June 2.
Negotiations between Pakistan and the IMF over the 2025–26 budget have concluded. According to sources, Pakistan has requested the IMF to lower its super tax target and extend relief to the real estate sector, salaried individuals, and other groups. The IMF has yet to formally respond to these proposals.
Sources also indicated that the upcoming annual tax target for the Federal Board of Revenue (FBR) may be split into two phases, with the government proposing a target exceeding Rs14 trillion.
IMF officials have urged the inclusion of revenue from pending tax-related court cases. Currently, Rs770 billion in such cases are under litigation, with decisions on Rs250 billion expected by June 30. Another Rs500 billion in verdicts is projected for the next fiscal year.
