Govt Officially Reveals FY26 Budget Date

The federal government will present the FY2025-26 budget on June 2, a few days before Eid Ul Azha, Planning Minister Ahsan Iqbal announced at a press conference. The Public Sector Development Program (PSDP) is expected to see an allocation of Rs. 921 billion, 16 percent lower than the revised Rs. 1.1 trillion for the current year. The Planning Commission had requested Rs. 2.9 trillion based on ministerial requirements, but the Ministry of Finance approved an Indicative Budget Ceiling (IBC) of only Rs. 921 billion. The Planning Minister said he will seek an increase in the allocation to at least Rs. 1.6 trillion to ensure Rs. 700 billion in rupee cover for foreign-funded projects. So far, Rs. 900 billion has been authorized for disbursement under the current PSDP. Further authorizations are expected in May and June. The Annual Plan Coordination Committee will meet on May 23 to finalize the development program. The National Economic Council is expected to approve macroeconomic targets and the PSDP by May 26 or 27. Due to the reduced ceiling, provincial projects in the PSDP will be cut back, and about 200 slow-moving projects will be terminated.