In Islamabad, the International Monetary Fund has moved the process forward. It has shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with the Government of Pakistan.
This step directly advances ongoing negotiations. Both sides will review the draft and work toward a consensus. Once they agree, they will finalize a staff-level agreement. Therefore, the MEFP draft now holds central importance.
Sources confirm that the IMF will soon send a technical mission to Pakistan. The team will likely arrive at the end of next month. Meanwhile, officials will focus discussions on the 2026–27 federal budget.
The draft sets clear targets for key institutions. It assigns responsibilities to the Ministries of Finance, Energy, and Petroleum. In addition, the Federal Board of Revenue must meet new revenue goals.
Moreover, the framework includes major regulatory bodies. Authorities have outlined targets for OGRA, NEPRA, and SECP. Provincial governments must also follow these targets.
The draft also introduces measures related to agricultural income tax. Policymakers aim to widen the tax base and strengthen revenue collection. As a result, they expect improved fiscal performance.
However, the government has excluded one major issue from the draft. It has not included the plan to adjust circular debt in the gas sector. Therefore, officials may handle this matter separately.
After both sides reach an agreement, Pakistan will send the finalized MEFP draft back to the IMF. Then, the IMF will review it for final approval. Consequently, this step will bring Pakistan closer to securing financial support.
In addition, the IMF technical team will actively support budget preparation. Experts will guide policymakers using IMF estimates and research. This approach ensures that fiscal planning stays aligned with agreed targets.
The mission will remain in Pakistan during May. During this time, experts will assist in key financial decisions. Meanwhile, government officials will coordinate closely with IMF representatives.
Overall, the MEFP draft marks a crucial phase in Pakistan’s economic planning. It shows strong coordination between Pakistan and the IMF. If both sides maintain progress, they can strengthen economic stability in the coming months.
