Summary
- The federal budget for fiscal year 2026-27 will be presented in the National Assembly on June 12, according to official confirmation.
- The National Economic Council (NEC), the country’s top economic decision-making body, met on Wednesday to finalise federal and provincial development plans ahead of the budget presentation.
- Officials said the overall national development portfolio includes provincial ADPs, federal PSDP, and state-owned enterprise funding, collectively forming a large-scale investment plan.
The federal budget for fiscal year 2026-27 will be presented in the National Assembly on June 12, according to official confirmation.
An adviser to the Finance Minister Khurram Schehzad confirmed the revised schedule, stating that the Pakistan Economic Survey for the outgoing fiscal year 2025-26 will be released on Thursday at 2:20pm by Finance Minister Muhammad Aurangzeb.
The National Assembly and Senate budget sessions have already been summoned, while preparations are underway at the parliamentary level for the upcoming financial announcements.
The National Economic Council (NEC), the country’s top economic decision-making body, met on Wednesday to finalise federal and provincial development plans ahead of the budget presentation.
Prime Minister Shehbaz Sharif, who chaired the meeting, said that extensive consultations were held with the provinces and decisions were taken in the national interest.
The NEC meeting had been delayed three times due to ongoing negotiations on fiscal matters, particularly related to provincial shares under the National Finance Commission (NFC) award.
Earlier discussions also centred on federal demands for over Rs1 trillion in additional fiscal space for strategic requirements.
According to sources, the ruling PML-N and its key ally PPP have reached a broad understanding on the budget framework. The agreement includes cutting expenditures across federal and provincial levels to address an estimated Rs800 billion revenue shortfall.
Under the arrangement, provincial shares from the divisible pool are expected to remain frozen at current levels. Any additional revenue beyond Federal Board of Revenue (FBR) targets may be retained by the Centre, sources said.
Reports suggest that the additional fiscal space under discussion for next year could range between Rs1.3 trillion and Rs1.7 trillion, depending on revenue performance.
Balochistan and Khyber Pakhtunkhwa have reportedly not yet formally joined the agreement.
The development programme for the upcoming year is expected to remain substantial despite IMF oversight, with adjustments made across various sectors.
The government has also reduced allocations in several areas to create fiscal space for infrastructure projects and coalition-related expenditures.
Officials said the overall national development portfolio includes provincial ADPs, federal PSDP, and state-owned enterprise funding, collectively forming a large-scale investment plan.
The government has also introduced measures to broaden the tax base, including schemes aimed at bringing small traders into the formal economy.
In addition, authorities are considering easing restrictions on remittances to support overseas Pakistanis facing investment challenges abroad.
The upcoming budget is expected to reflect continued negotiations between the federation and provinces over fiscal distribution and development priorities.
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