IMF talks: Aurangzeb meets mission, farm income tax targets questioned

IMF Pakistan talks started on Monday, 28 September 2026. A staff mission led by Iva Petrova is in Pakistan for about two weeks, into the first week of October, to complete two reviews at once. If it ends in a staff-level agreement and the IMF board signs off, Pakistan gets roughly $1.2 billion, expected at the end of November or in early December.

Update, 29 September night: Aurangzeb opens policy talks, farm tax questioned

Finance Minister Muhammad Aurangzeb met the mission in Islamabad on Tuesday, after its first days with the State Bank in Karachi, Dawn reported. The talks cover the fourth review of the $7 billion Extended Fund Facility and the third review of the $1.4 billion Resilience and Sustainability Facility. Dawn put the combined payout, about $1 billion plus $200 million, at the end of October or early November if the reviews conclude successfully; earlier reports pointed to late November. Pakistan is still in breach of the benchmark on Sovereign Wealth Fund law amendments covering seven state firms (including OGDCL, PPL, Mari Petroleum and NBP, about $8 billion in assets), which await Parliament, so board waivers may be needed.

Agricultural income tax is a sore point. ARY News reported, citing unnamed sources, that the IMF raised concerns over revenue targets from agricultural income tax, and that the federal government backed farmers, arguing that high production costs leave most of them unable to pay. No figures were given. The FBR also briefed the mission on its digitalisation drive.

What it means for you: a smooth review keeps the rupee steady (track it on the dollar rate page), while any new revenue demand would land in the next budget or a mini-budget. The FBR says there will be no extension to the 30 September income tax return date.

Update, 29 September morning: Rs 144bn tax hit, procurement rules, auto policy

The war cost Rs 144 billion in tax. The government told the mission that the US-Iran conflict and the disruption in the Strait of Hormuz cut tax revenue by an estimated Rs 144 billion in July to September, mainly sales tax and withholding tax collected at import, because fuel costs rose and activity slowed, ProPakistani reported.

The FBR says it will still hit its quarter target of Rs 3.053 trillion by 30 September. It met the July target, fell Rs 28 billion short in August, and expects about Rs 1.330 trillion in September against a monthly target of Rs 1.343 trillion. It also told the IMF about 4.7 million income tax returns had been filed, against 3.2 million a year earlier, with the filing deadline on 30 September: see income tax return last date.

New procurement rules are in force. The Public Procurement Rules 2026, notified on Monday two days before an IMF deadline, replace the 2004 rules. Federal agencies must buy through the E-Pak Acquisition and Disposal System (EPADS), set up procurement cells, and send any purchase above Rs 2 billion for third-party evaluation. Direct contracts with state-owned entities stay, with a 40 percent cap on subcontracting. Pakistan is still behind on one benchmark: amendments to the Sovereign Wealth Fund Act, which need Parliament.

Auto policy briefing today. Officials are presenting the draft five-year auto policy and the National Tariff Policy to the mission on Tuesday. The IMF programme calls for less protection for car assemblers and gradually lower import duties, which is what would move new-car prices over time. Current prices are on our car price list.

Update, 28 September night: civil servants' assets on the table

On the first day of talks, the FBR, the Establishment Division and the Finance Division briefed the IMF mission on the new asset disclosure rules for federal civil servants in BS-17 to BS-22, a structural commitment under the programme, according to ProPakistani and Dawn.

Only selected, non-sensitive details will be made public, not full declarations. Finance Secretary Imdadullah Bosal told a parliamentary committee the government would publish what the IMF requires and withhold the rest on security grounds. The FBR will run risk-based checks and send discrepancies to the Establishment Division, which can open disciplinary action. Legislators questioned why civil servants get a lighter standard than elected officials, who must disclose full assets.

If you are a federal officer in BS-17 or above: your declaration is due on the FBR portal by 30 October. Keep it consistent with your income tax return; the income tax calculator helps you check your declared income before you file.

What is on the table

The issues the mission will press

According to reports in Dawn and ProPakistani, the agenda covers:

• Tax base and FBR reforms, including how many new people and businesses are in the tax net, and provincial tax and non-tax revenue.
• Circular debt in the power and gas sectors and wider energy reforms.
• Sugar sector deregulation, one of the conditions still reported as not fully met.
• The primary surplus, current account and foreign exchange reserves, plus the exchange rate.
• The Sovereign Wealth Fund.
• Anti-money laundering and terror financing measures.
• Spending on health and education, where targets have also been reported as behind.

Overall implementation is described as strong, but these gaps are where the negotiation will happen.

What it means for you

IMF reviews are not only about a loan. They decide the conditions the government then puts into your bills and taxes.

1. Electricity and gas bills. Circular debt talks usually end in tariff decisions. Check what a change would mean for your home on the electricity bill calculator and gas bill calculator.
2. Taxes. Any shortfall in FBR collection raises the chance of extra measures. Our income tax calculator uses the current salaried slabs.
3. The rupee. A completed review supports reserves, which matters for the dollar rate in Pakistan. The interbank rate stood at Rs 277.16 on 28 September.
4. Sugar prices. Deregulation would change how sugar is imported, exported and priced, so watch the outcome if you buy in bulk.

What happens next

The mission will meet the Finance Ministry, FBR, the State Bank, the power and petroleum divisions and the provinces. A staff-level agreement, if reached, is normally announced in an IMF press release at the end of the visit. The board meeting and disbursement come weeks later.

We will update this story when the mission ends or a staff-level agreement is announced.