Overview

• Finance Minister Muhammad Aurangzeb ruled out a mini-budget or new tax measures despite early-year shortfalls, citing recoveries from court cases and tighter compliance to close the gap.
• He said talks with the IMF are progressing positively, with formal negotiations that began on September 29 covering the EFF second review and the first review under the climate resilience facility.
• The Finance Division’s new Tax Policy Office will draft the next Finance Bill, shifting policy work away from the FBR, which will focus on tax collection.
• Debt management steps include repayment of a $500 million Eurobond, plans to launch a Panda bond in November starting at $250 million with a program that may reach $1 billion in phases, and an investor conference in Washington later this month.
• IMF disbursements remain tied to successful reviews, and authorities flagged a $1.3 billion Eurobond maturity in April 2026 as a forthcoming external obligation.