Pakistan to Present IMF-Required Budget Reform Plan Next Month

The Ministry of Finance is preparing a set of final proposals to reform Pakistan’s budget execution system and will present them to the International Monetary Fund (IMF) by next month, according to sources.

Consultations between Pakistan and the IMF’s technical team are ongoing, with discussions focused on improving the budget implementation mechanism. Sources say that a total of 15 proposals have been reviewed, including a plan to fully digitize the Public Financial Management (PFM) system.

One proposal under consideration is the formation of a special committee to oversee the implementation of the PFM digitalization plan.

The reforms aim to digitize the entire budget-making process through e-office and e-PADs, eliminate discrepancies in financial data, and prepare the budget using updated and more accurate information.

The IMF has also emphasized the need to strengthen coordination with all ministries during the budget preparation phase.

According to sources, the IMF’s technical mission held detailed discussions with Pakistan’s economic authorities regarding major tax policy changes expected in the next budget.

The Ministry of Finance says these reforms are designed to make the budget execution system transparent, efficient, and fully digitized, improve financial discipline, and promote data-driven policy decisions.