ISLAMABAD – Adviser to the Finance Minister Khurram Shehzad announced Friday that Pakistan’s federal budget for the fiscal year 2025-26 will now be presented on June 10, following a delay linked to unresolved negotiations with the International Monetary Fund (IMF). The Pakistan Economic Survey 2024-25 will be unveiled a day earlier on June 9, providing insight into the country’s economic performance.
This comes after Planning Minister Ahsan Iqbal had initially stated the budget would be presented on June 2. That version included a 16% cut in development allocations, setting the Public Sector Development Programme (PSDP) at Rs921 billion, potentially leading to the suspension of around 200 ongoing development projects.
According to government sources, discussions with the IMF regarding fiscal targets remain inconclusive, despite ongoing meetings in Islamabad. The Finance Ministry emphasized that consultations with the IMF are essential under the terms of the current loan program and will continue into next week.
Meanwhile, the IMF approved a $1.4 billion loan for Pakistan on May 9 through its Climate Resilience Fund, bringing total disbursements under the 37-month Extended Fund Facility (EFF) to $2 billion. The IMF praised Pakistan’s efforts, stating that policy initiatives have significantly helped stabilize the economy and restore investor confidence.
In parallel, government representatives — including the Finance Secretary and Federal Board of Revenue (FBR) chairman — presented proposals to ease the tax burden on salaried individuals, reduce industrial tax rates, and lower both development and non-development expenditures. Other suggestions included implementing agricultural income tax and enhancing provincial revenue frameworks.
The upcoming budget will also aim to increase tax collection, building on last year’s target of Rs12,970 billion, a 38% hike over the previous year. Finance Minister Muhammad Aurangzeb had presented the previous budget with a total outlay of Rs18.9 trillion, closely aligned with IMF recommendations.
As fiscal challenges persist and IMF’s input becomes pivotal, all eyes are now on June 10 to see how the government balances public expectations with international obligations.
