Federal budget 2025-26 to be presented on June 2

May 09, 2025 (MLN): The federal government will unveil the budget for the fiscal year 2025-26 on June 2, just days ahead of Eid ul Azha, Planning Minister Ahsan Iqbal announced at a press conference.

An allocation of Rs. 921 billion has been set for the Public Sector Development Program (PSDP), reflecting a 16% reduction from the revised Rs1.1 trillion for the ongoing fiscal year. Although the Planning Commission had initially sought Rs2.9tr based on ministry demands, the Ministry of Finance approved an Indicative Budget Ceiling (IBC) of only Rs921 billion.

The Planning Minister stated he would advocate for increasing the allocation to at least Rs1.6tr to ensure Rs700bn in rupee cover for foreign-funded initiatives, as per the press release.

To date, Rs900bn has been authorized for release under the current PSDP, with further authorizations expected in May and June.

The Annual Plan Coordination Committee is scheduled to meet on May 23 to finalize the development program, while the National Economic Council is likely to approve macroeconomic targets and the PSDP by May 26 or 27.

With the reduced ceiling, provincial projects in the PSDP are set to face cutbacks, and around 200 slow-progressing projects will be discontinued.

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