Govt to announce budget on June 10 instead of June 5, says parliamentarian

Pakistan government will present its annual budget on June 10 for the financial year 2026-27, it was learnt on Tuesday.

Senior Pakistan Muslim League-Nawaz (PML-N) leader and Member of the National Assembly (MNA), Tahira Aurangzeb, confirmed to Business Recorder that the federal budget, which was earlier scheduled to be announced on June 5 (Friday), would now be presented on June 10 (Wednesday).

She also disclosed that the National Assembly session convened for the budget presentation had been postponed accordingly.

When asked about the reasons behind the delay, the parliamentarian declined to elaborate on the factors prompting the rescheduling.

Earlier, the National Economic Council (NEC), chaired by Prime Minister Shehbaz Sharif, postponed its crucial meeting, scheduled to be held tomorrow, to facilitate further deliberations on the upcoming budget.

“It is to inform that the meeting of the National Economic Council (NEC) scheduled on Wednesday, 3rd June, 2026, has been postponed. New date will be communicated in due time,” read the notice by the Cabinet Division.

The postponement of the NEC meeting is particularly significant as the constitutional body is required to approve key macroeconomic targets and endorse the size of the Public Sector Development Programme (PSDP) before the federal budget is formally unveiled.

Sources familiar with the matter told Business Recorder that one of the key sticking points remained the size and composition of the PSDP, with multiple stakeholders within the coalition government pressing for higher allocations for development schemes despite fiscal constraints.

On Monday, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said that the Ministry of Finance allocated Rs1.126 trillion for the PSDP 2026–27 against total development requirements of Rs4.097 trillion, resulting in a funding gap of nearly Rs3 trillion.

Meanwhile, another factor contributing to the delay is the government’s continuing engagement with the IMF over the fiscal framework underpinning the upcoming budget, said sources.

Pakistan is currently navigating negotiations related to revenue targets, expenditure rationalisation and fiscal consolidation measures, making IMF consultations central to the finalisation of the budget architecture.

Sources said authorities wanted to ensure broad alignment with IMF expectations before locking in spending commitments and announcing taxation measures.

“The government wants to avoid last-minute changes after the budget announcement. Taking the IMF on board on key numbers is being treated as essential,” a source involved in the discussions said.

The budget comes as Pakistan navigates strict IMF-mandated fiscal curbs and seeks economic stabilisation. The country is aiming for 4% GDP growth in the next fiscal year, a slightly faster pace than last year, even as the crude price shock from the Middle East war looms.

Pakistan expects inflation to average 8.2% next year.