Federal Budget in Pakistan: Uncertainty and Delays

Strategic Insights -

As the federal budget for the new fiscal year 2025-26 is being finalised in consultation with the International Monetary Fund (IMF), uncertainty and delays in its presentation have been reported. Finance Secretary Imdadullah Bosal stated that the budget will be presented on June 10, but the date of the National Economic Council (NEC) meeting may be revised. The IMF virtual talks are set to resume today to discuss relief measures for the salaried class and industrial sector. Meanwhile, finance ministry sources indicate that the federal government may further delay the budget presentation due to Eid holidays.

Key Takeaways:

  • The federal budget for 2025-26 is being finalised in consultation with the IMF.
  • The Finance Secretary, Imdadullah Bosal, has stated that the budget will be presented on June 10.
  • The National Economic Council (NEC) meeting may be delayed, and its date may be revised.
  • The IMF virtual talks are scheduled to resume today to discuss relief measures for the salaried class and industrial sector.
  • The Annual Plan Coordination Committee (APCC) meeting's date remains undecided.
  • The Asian Development Bank (ADB) is expected to approve $800 million in funding on June 3.
  • The federal government may further delay the budget presentation due to Eid holidays.
  • Finance Minister Muhammad Aurangzeb has signalled tax relief for the salaried class in the upcoming federal budget.
  • The government is working to reduce the tax burden on salaried individuals.

Statistics:

  • June 10: The expected date for the presentation of the federal budget 2025-26.
  • June 3: The date when the Asian Development Bank (ADB) is expected to approve $800 million in funding.
  • $800 million: The amount of funding expected to be approved by the Asian Development Bank (ADB).
  • Eid ul Adha: Expected to fall on June 7 and 8, which may impact the scheduling of the budget presentation.
  • June 9: The third day of Eid, which may be declared a working day to accommodate critical economic proceedings.

Sources:

  • "Federal Finance Secretary expresses optimism about IMF talks" by The News International (No date provided)
  • "IMF, Pakistan to resume talks on Monday" by The Express Tribune (No date provided)
  • "Finance Secretary urges parliamentarians to pass finance bill to simplify tax system" by Dawn (No date provided)