An International Monetary Fund (IMF) delegation started holding talks with Pakistani officials in connection with the upcoming budgets, sources said on Wednesday.

The IMF mission held an introductory session with officials from the Ministry of Finance and the federal budget team shortly after arriving in Islamabad late last night.

The talks covered the country’s economic targets for the upcoming fiscal year.

A statement from the Ministry of Finance on Wednesday said that Federal Minister for Finance and Revenue Muhammad Aurangzeb met with the visiting IMF Mission, led by Mission Chief Iva Petrova, in Islamabad.

The discussions focused on Pakistan’s macroeconomic outlook, preparations for the upcoming federal budget, and the government’s ongoing reform agenda aimed at strengthening economic stability and fostering sustainable growth.

The meeting was attended by State Bank of Pakistan Governor Jameel Ahmad, Finance Division Secretary Imdadullah Bosal, FBR Chairman Rashid Mahmood Langrial, and other senior officials.

According to a report in Business Recorder, the government is not expected to introduce new taxes in the upcoming budget.

Instead, authorities plan to meet the next fiscal year’s revenue target — estimated at Rs778-780 billion — through enhanced enforcement and administrative measures.

The sources further indicated that the federal budget is likely to offer relief to taxpayers, with alternative revenue-generation strategies being relied upon to offset any potential shortfall.

Budget negotiations between Pakistan and the IMF team are expected to continue for up to a week.

Discussions will cover key areas, including tax targets, development expenditures, fiscal discipline, and the IMF’s conditions for economic reforms.

During the talks, the government and IMF representatives will also exchange proposals on government spending plans and strategies to reduce the budget deficit for the next fiscal year.