Pakistan has moved closer to securing a staff-level agreement with the International Monetary Fund after the global lender shared a draft of the Memorandum of Economic and Financial Policies with the government, according to sources.
The agreement is expected to be finalized once consensus is achieved on the draft, marking a key development in ongoing negotiations between both sides.
Sources said the draft outlines fresh targets for major economic institutions, including the Ministry of Finance, Ministry of Energy, Ministry of Petroleum, and the Federal Board of Revenue. Regulatory bodies such as OGRA, NEPRA, and SECP, along with provincial administrations, have also been assigned new performance benchmarks.
In a notable development, new taxation targets related to agricultural income have also been incorporated into the policy framework, signaling a broader tax net expansion effort.
Officials confirmed that once both sides agree on the draft, it will be formally sent back to the IMF for final approval.
Separately, sources revealed that a government plan to address circular debt in the gas sector has not been included in the current draft, indicating that the issue remains unresolved at this stage.
Looking ahead, an IMF delegation is expected to visit Pakistan toward the end of next month to begin formal discussions on the upcoming federal budget.
A technical mission from the IMF will also assist Pakistani authorities in preparing the 2026- 2027 budget. The budget is expected to be aligned closely with IMF projections and analytical assessments.
The technical team is likely to stay in Pakistan through May to support budget planning and ensure compliance with agreed economic targets, sources added.