The International Monetary Fund (IMF) has instructed the government to draft the budget 2025–26 strictly under the terms of the Staff-Level Agreement (SLA) — reached between Islamabad and the Fund before the release of latest loan tranche — and to secure its approval from Parliament by the end of June.

Sources confirmed that the IMF emphasized full alignment of the budget’s preparation and approval with agreed performance targets, calling it a core condition of the ongoing deal.

As part of the planning process, the government is expected to hold a key budget meeting after the Eid holidays.

Officials said that the IMF also pushed for a comprehensive plan to impose new taxes on agricultural income, listing it as a key requirement of the agreement.

They warned that no part of the agreement can move forward without mutual consensus on budget structure, revenue and expenditure estimates, and tax reforms.

The government is currently finalizing the budget in line with IMF demands, aiming to conclude the staff-level agreement quickly and open the door to a new financial program.

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