Islamabad(The COW News Digital)-Pakistan has reached an agreement with the International Monetary Fund (IMF) regarding changes in tax policy, budget formulation, and public finance management for the upcoming fiscal year. According to sources, a technical report containing proposals for the next budget will be submitted to the Ministry of Finance in January. The IMF technical team, after suggesting significant modifications to the budget process, has now returned
The Ministry of Finance is expected to prepare and submit final recommendations to the IMF next month to implement these changes in budget execution. Sources revealed that during discussions with the IMF technical team, 15 proposals were under consideration. These included developing a digitized public finance management plan and forming a committee to oversee its implementation.
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Other suggested improvements focus on modernizing budget preparation through the full use of e-office systems and e-pads, eliminating inconsistencies in data, and ensuring that new data forms the basis for budget planning. The process will also involve increased consultation with all ministries to enhance coordination. In addition, the IMF technical mission reviewed proposed changes to tax policy for the upcoming budget, emphasizing the need for reforms to strengthen fiscal management.
These steps aim to make Pakistan’s budget process more efficient, transparent, and data-driven, marking a significant shift in the country’s approach to public finance management
