Pakistan Assures IMF Over Fiscal Targets And Reforms

ISLAMABAD: (Web Desk) – Pakistan has assured the International Monetary Fund that it will maintain a primary surplus target of two per cent during fiscal year 2026-27 as budget negotiations between both sides concluded on Wednesday. The IMF emphasized the importance of expanding Pakistan’s tax base to improve revenue collection and ensure fiscal stability.

The global lender also urged the government to reduce public expenditures and accelerate structural reforms in key sectors. According to the joint statement issued after the discussions, the State Bank of Pakistan will continue its tight monetary policy to keep inflation under control.

The IMF delegation, headed by Iva Petrova, visited Pakistan from May 13 to May 20 to review economic progress and discuss upcoming fiscal measures.

Pakistan IMF Primary Surplus 2% GDP FY2028 Target Locked In as IMF Mission Wraps Up Islamabad Visit

Meanwhile, reports revealed that the IMF raised serious concerns regarding Pakistan’s revised solar energy policy. Under the updated framework, existing and new solar consumers have been categorized separately. Existing users will continue benefiting from the net metering system, while cross-subsidies will remain available for older consumers.

Officials clarified that previous solar users will not be shifted to the net billing mechanism, adding that the proposed net billing model aligns with international practices and standards.

Government officials are also expected to brief the IMF on the privatization of electricity distribution companies (DISCOs). Authorities confirmed that the privatization process for three DISCOs is currently in progress.

In addition, officials stated that a restructuring plan for the national transmission network has already been finalized. Pakistan is also preparing to conduct its first wholesale electricity auction by mid-June 2026.