Federal budget likely to be presented on June 12 instead of June 10

The federal government may postpone presentation of fiscal year 2026-27 budget from June 10 to June 12, with a final decision on the proposed change expected within a day or two, according to media reports. 

On Monday, President Asif Ali Zardari and Prime Minister Shehbaz Sharif held consultations on budget proposals, economic matters and political developments.

The budget was initially expected to be presented on June 5 before being moved to June 10. Its likely presentation on June 12 would mark the second change in the government’s budget schedule.

The Economic Survey for the outgoing fiscal year is expected to be released on June 11, followed by presentation of the federal budget before Parliament on June 12.

The government has yet to finalise fiscal arrangements with the provinces and lock taxation, non-tax revenue and expenditure estimates with the International Monetary Fund before presenting the budget.

The Centre has been seeking Rs1.7 trillion in additional fiscal space from the provinces for defence, security and social-sector spending, but consensus has not yet been reached.

The decision to revise the budget schedule was taken during a meeting chaired jointly by President Zardari and Prime Minister Shehbaz Sharif at Aiwan-e-Sadr, according to sources.

The meeting discussed the federal budget, economic outlook, national security and political and governance developments in Gilgit-Baltistan and Azad Jammu and Kashmir.

Pakistan Peoples Party Chairman Bilawal Bhutto Zardari, Deputy Prime Minister and Foreign Minister Ishaq Dar, Interior Minister Mohsin Naqvi, Law Minister Azam Nazeer Tarar and Finance Minister Muhammad Aurangzeb attended the meeting.

Prime Minister’s Adviser on Political Affairs Rana Sanaullah, Sindh Chief Minister Syed Murad Ali Shah and Azad Jammu and Kashmir Prime Minister Raja Faisal Mumtaz Rathore were also present.

Other participants included senators Sherry Rehman, Saleem Mandviwalla and Ahad Cheema, MNA Syed Naveed Qamar and former prime minister Raja Pervez Ashraf.

According to an announcement issued by Aiwan-e-Sadr, participants reviewed national security, internal and regional developments, economic affairs, law and order and other matters of national importance.

President Zardari called for the upcoming federal budget to prioritise public welfare, provincial rights and economic stability. He urged the government to align its economic growth targets with measures aimed at providing relief to citizens.

The meeting also reviewed recent elections in Gilgit-Baltistan and the situation in Azad Jammu and Kashmir.

Interior Minister Mohsin Naqvi briefed the president on his visit to Iran and continuing regional diplomatic engagements.

PPP support for budget

Sources said the government secured support from the Pakistan Peoples Party for the passage of the federal budget after both sides reached agreement on most budget-related proposals.

Government and PPP representatives agreed on a majority of their respective recommendations, while technical committees will continue reviewing proposals that require further work.

The discussions included measures to broaden the tax base and address fiscal challenges before the budget is tabled in Parliament.

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal had earlier said several budget-related matters were still being finalised. He said limited time and the approaching month of Muharram had complicated completion of the budget process.

Ahsan Iqbal also said negotiations between Pakistan Muslim League-Nawaz and Pakistan Peoples Party over the Public Sector Development Programme had been completed, with coalition partners reaching an understanding on development allocations.

According to the minister, smaller provinces would receive a larger share of federal development funding during fiscal year 2026-27.

Balochistan is expected to receive the highest federal development allocation, followed by Sindh and Khyber Pakhtunkhwa, while Punjab would receive the lowest share.

The government also plans to launch the Sukkur-Hyderabad Motorway during the next fiscal year and include funding for the K-IV Water Project in the federal budget.

NEC schedule

The National Economic Council meeting, which was scheduled for Tuesday, is now expected to be held on June 10 to approve the national development programme and macroeconomic framework for fiscal year 2026-27.

The NEC is chaired by the prime minister and includes the four provincial chief ministers and four federal ministers.

After reaching agreement on the budget estimates, the government will present its proposed taxation, non-tax revenue and expenditure measures to the IMF before formally announcing the budget in Parliament.