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Public finance

Pakistan to Present Federal Budget for FY 2025-26 on June 10, with Several Key Tax and Development Allocations

Strategic Insights

— 2 min read

Pakistan's adviser to the Finance Minister, Khurram Schehzad, announced that the federal budget for the fiscal year 2025-26 will be presented on June 10, a week after the release of the Pakistan Economic Survey 2024-25 on June 9. The announcement follows a statement by Planning Minister Ahsan Iqbal that the federal government will present the next fiscal year's budget on June 2, with a 16% lower development allocation of Rs921 billion, which could result in the closure of about 200 ongoing development projects. The budget will be preceded by the release of the Pakistan Economic Survey 2024-25. Finance Minister Muhammad Aurangzeb presented his first federal budget last year with a total outlay of Rs18.9 trillion, which was largely in line with IMF guidelines, aiming to widen the tax base to avoid burdening existing taxpayers.

Key Takeaways:

  • The federal budget for FY 2025-26 will be presented on June 10, 2025, and will include the release of the Pakistan Economic Survey 2024-25 on June 9, 2025.
  • The federal government plans to present the next fiscal year's budget on June 2, with a 16% lower development allocation of Rs921 billion, potentially leading to the closure of around 200 ongoing development projects.
  • The goal of widening the tax base was mentioned by Finance Minister Muhammad Aurangzeb during last year's budget presentation to avoid burdening existing taxpayers.
  • Pakistan's total revenue for the current fiscal year was budgeted at Rs17,815 billion, with a net revenue of Rs10,377 billion, a 48.7% increase from the previous fiscal year.
  • The government aims to collect Rs12,970 billion in taxes, a 38% increase from the previous year.
  • The International Monetary Fund (IMF) has approved funding for Pakistan under the Extended Fund Facility (EFF) programme, citing the country's success in meeting all the targets and making progress on certain reforms.
  • IMF Director of the Communications Department, Julie Kozack, stated that the programme is focused on stabilizing foreign exchange reserves, and not related to budget financing.

Statistics:

  • 16%: Lower development allocation of Rs921 billion in the next fiscal year's budget compared to the previous year.
  • Rs10,377 billion: Net revenue collected in the current fiscal year, a 48.7% increase from the previous year.
  • Rs17,815 billion: Pakistan's total revenue for the current fiscal year.
  • Rs18.9 trillion: Total outlay of the federal budget presented by Finance Minister Muhammad Aurangzeb last year.
  • Rs12,970 billion: Tax collection target for the Federal Board of Revenue, a 38% increase from the previous year's goal.
  • 48.7%: Increase in net revenue from the previous fiscal year.
  • 38%: Increase in tax collection target for the Federal Board of Revenue compared to the previous year.

Sources:

  • "Adviser to finance minister announces June 10 as federal budget day", Express Tribune, April 14, 2025
  • "IMF approves funding for Pakistan under Extended Fund Facility programme", Reuters, April 14, 2025
  • "Pakistan Economic Survey 2024-25 to be released on June 9, federal budget on June 10", Business Recorder, April 14, 2025

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