Pakistan’s federal government plans to present the budget for the fiscal year 2025-26 after consultations with the International Monetary Fund (IMF). An IMF delegation is expected to visit Pakistan soon to discuss key economic policies and revenue measures to align with the IMF’s recommendations. The budget is scheduled to be presented in the first week of June.

The IMF has agreed to provide limited relief in the real estate sector by removing the federal excise duty on the first sale and purchase of property, while maintaining existing withholding and income tax rates. The tax rate for property sellers will also remain unchanged.

Failure to comply with the IMF agreement may result in Pakistan losing access to climate-related financial assistance. The IMF Executive Board is expected to review Pakistan’s program after the budget details are finalized, with approval anticipated in late May or June.

This development follows a staff-level agreement between the IMF and Pakistani authorities concerning the first review of the ongoing 37-month bailout program. Upon the IMF Executive Board’s approval, Pakistan will gain access to approximately $1 billion under the Extended Fund Facility (EFF), bringing total disbursements to around $2 billion