Federal Budget to be presented on June 10

May 23, 2025 (MLN): The federal budget for the fiscal year 2025 - 2026 will be presented on June 10, 2025, while the Economic Survey will be released on June 09, 2025, as announced by Khurram Schehzad, Advisor to the Finance Minister Senator Muhammad Aurangzeb today.

An allocation of Rs921 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 Rs921bn.

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.

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

The Annual Plan Coordination Committee is scheduled to meet on May 23 to finalise 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.

Furthermore, Pakistan must significantly enhance its defense capabilities, as Senator Faisal Vawda has proposed a threefold increase in the defense budget and a doubling of salaries for armed forces personnel to address the growing security challenges facing the nation.

Emphasising the current security challenges, he urged the suspension of development spending to prioritise defense funding.

Vawda further recommended that opposition members be part of foreign diplomatic delegations to enhance representation.

During the same session, Senator Irfan Siddiqui condemned violent acts targeting children and public infrastructure, labelling them as illegitimate and outside the bounds of any lawful struggle for rights.

Former Finance Minister Ishaq Dar criticised the involvement of Indian proxies in destabilising actions and asserted that such interference must cease. He warned that India should reflect on Pakistan’s retaliatory stance.

Senator Sherry Rehman, while reiterating her party’s support for dialogue, drew a firm line against those involved in the killing of innocent children, stating that such perpetrators cannot be regarded as political actors.

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