The government has reached an understanding with the International Monetary Fund (IMF) on key reforms to tax policy, budget formulation, and public finance management ahead of the upcoming fiscal year.
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According to official sources, the Ministry of Finance will receive the technical report on next year’s budget proposals in January. The IMF’s technical mission, which has now returned, has provided extensive recommendations calling for major structural changes in how the federal budget is prepared and implemented.
Sources said the Finance Ministry is expected to finalize and share its refined proposals with the IMF next month. A total of 15 reform measures were discussed with the technical mission to improve budget execution and address long-standing inefficiencies.
The IMF’s recommendations include developing a digitized public finance management (PFM) plan, establishing a dedicated committee to supervise its implementation, adopting full e-office and e-PAD systems for budget preparation, and resolving recurring data inconsistencies across ministries.
The mission also stressed preparing the budget using updated and accurate data, while expanding inter-ministerial consultations during the formulation process. Significant changes to tax policy have also been proposed as part of the new budget framework.
These reforms are expected to shape the government’s strategy for the next fiscal year as it seeks to strengthen fiscal discipline and align with IMF program targets.
