Budget 2025-26
The federal government of Pakistan has announced a revised date for the presentation of the national budget for the fiscal year 2025-26. According to a spokesperson from the Ministry of Finance, the budget will now be presented in the National Assembly on June 10, shifting from the previously anticipated date of June 2.
The spokesperson explained that the change has been made to allow more time for comprehensive preparation and the finalisation of critical financial and economic matters. The Ministry of Finance emphasized the importance of ensuring that all aspects of the budget are thoroughly reviewed and completed before it is presented to parliament.
This decision comes at a crucial time, as Pakistan continues its ongoing negotiations with the International Monetary Fund (IMF). These talks, which are centered around the forthcoming federal budget, are nearing conclusion, with key developments anticipated in several areas.
According to government sources, discussions have progressed on proposals aimed at lowering tax rates for the industrial sector, an initiative designed to stimulate investment and economic growth.
One of the government’s priorities is to provide relief to salaried individuals by reducing their tax burden. Simultaneously, policymakers are working on a strategy to enhance both tax and non-tax revenue collections. This includes the consideration of a framework for collecting agricultural income tax—an area long debated but rarely implemented effectively—and efforts to boost revenue generation at the provincial level.
Additionally, sources have revealed that the budget may include a proposed increase in the defence budget, reflecting ongoing national security concerns. A working framework to reduce overall public expenditures is also being finalized as part of broader fiscal consolidation efforts.
The IMF delegation has held several high-level meetings in recent days, including talks with Prime Minister Shehbaz Sharif, President Asif Ali Zardari, and Deputy Prime Minister Ishaq Dar.
The outcome of these engagements has been described as encouraging, and further discussions are expected to continue into June. Technical-level negotiations between the IMF and Pakistan’s economic team have been underway in Islamabad for the past five days.
This year’s budget is expected to strike a delicate balance between promoting economic growth, addressing public welfare, and meeting the IMF’s fiscal requirements. The June 10 presentation date now sets the stage for what could be one of Pakistan’s most significant budget sessions in recent years.
