The federal government has announced its decision to present the budget for the fiscal year 2025-26 before the upcoming Eid-ul-Azha. Sources indicate that the budget is likely to be tabled in Parliament between June 3rd and June 5th.
A proposal is under consideration to convene the budget session of the National Assembly earlier than the usual schedule. This move aims to finalize the fiscal plan well in advance of the end of the current fiscal year.
Relief Measures Expected
The upcoming budget is expected to include measures aimed at providing relief to government employees and pensioners. These proposed measures will require approval from the federal cabinet before they can be implemented.
The process for approving the budget is anticipated to begin immediately following the Eid holidays. The government is constitutionally obligated to secure the final passage of the budget before June 30th.
IMF Consultations Underway
The targets outlined in the new budget, particularly those concerning tax revenues and development expenditures, will be determined in consultation with the International Monetary Fund (IMF). An IMF mission is scheduled to visit Pakistan around mid-May for negotiations.
During the IMF visit, discussions will center on annual tax targets, development spending priorities, and crucial economic reforms. The government’s objective includes broadening the tax base by incorporating the retail, wholesale, and real estate sectors into the tax system. Furthermore, plans are in place to commence the implementation of agriculture income tax starting from July 1st.
Finance Minister Muhammad Aurangzeb is slated to participate in the Spring Meetings of the IMF and World Bank in Washington D.C., from April 21st to 26th. These meetings are expected to play a significant role in shaping Pakistan’s fiscal strategy and its economic direction for the coming fiscal year.
