Pakistan and the IMF agree on big reforms to how taxes are handled and how budgets are made.

The government and the IMF have agreed on reforms to how taxes are collected, how budgets are made, and how public money is managed for the next budget.

Sources say that the Ministry of Finance will acquire the technical report on budget recommendations for the upcoming fiscal year in January. The IMF’s technical delegation has come back after suggesting big revisions to the budget.

It was also said that the Ministry of Finance will make final ideas for modifications to the way the budget is carried out and send them to the IMF next month. The IMF technical delegation talked about fifteen ideas for making the budget implementation process better.

The IMF team suggested making a digital public financial management (PFM) strategy, setting up a committee to oversee the digital PFM plan, using full e-offices and e-PADs to prepare the budget, and getting rid of data inconsistencies.

Sources said that the technical mission also suggested making the budget based on new information and having more meetings with all ministries during the budget process. The mission also suggested big changes to tax policy for the upcoming budget.