International Monetary Fund (IMF) Delegation has arrived in Pakistan to begin high -level political conversations about the country’s upcoming federal budget for the financial year 2025-26, officials said Monday.

According to the Ministry of Finance, the final negotiations will cover revenue goals, expenses and budget assessments, reported Express News.

Negotiations are part of the efforts to stabilize Pakistan’s economy in the midst of rising tax and external financing pressure.

The IMF team will remain in Islamabad until May 22. Discussions will involve senior officials from the Ministry of Finance, the Federal Board of Revenue (FBR), State Bank of Pakistan (SBP) and Planning Commission.

Negotiations come as Pakistan faces a growing external financing gap, which is expected to reach $ 19.75 billion in the next financial year. The gap is expected to remain over $ 19 billion in 2026–27.

By 2027–28, the country’s total external economic deficit is expected to exceed Rs 8.8 trillion. Pakistan’s currency reserves could increase to $ 23 billion at that time according to projections.

Despite this, no income from privatization efforts is expected before at least 2030, the IMF said.

Transfers are expected to remain stable at around $ 36 billion, while the deficit on current account is expected to remain close to $ 3.85 billion.