Overview
- Officials say Pakistan has agreed in principle to IMF-recommended changes to tax policy, budget-making, and public finance management for the upcoming fiscal plan.
- The reform package centers on fully digitizing PFM, introducing a dedicated oversight committee, and taking budget preparation online through e-office and e-PADs.
- Fifteen proposals were discussed to tighten budget execution by eliminating data inconsistencies and improving transparency and control.
- Budget formulation would shift to updated, consolidated datasets with broader consultation across line ministries.
- A technical report on next year’s budget proposals is due to the Finance Ministry in January, as the IMF presses governance fixes and procurement rule discipline highlighted in its recent diagnostic.