Islamabad: The federal government will present the FY2025-26 budget on June 2, just a few days before Eid Ul Azha, announced Planning Minister Ahsan Iqbal during a press conference.
Key Budget Highlights:
- The Public Sector Development Program (PSDP) is expected to receive an allocation of Rs. 921 billion.
- This amount is about 16% less than the revised Rs. 1.1 trillion allocated for the current year.
- The Planning Commission had originally requested Rs. 2.9 trillion based on ministry needs.
- However, the Ministry of Finance approved only Rs. 921 billion as the Indicative Budget Ceiling (IBC).
Ahsan Iqbal said he will ask for an increase in the development budget to at least Rs. 1.6 trillion. This will help ensure Rs. 700 billion in rupee cover for foreign-funded projects.
So far, Rs. 900 billion has been authorized for disbursement under the current year’s PSDP. Additional funds may be released in May and June.
Upcoming Planning Meetings:
- The Annual Plan Coordination Committee (APCC) will meet on May 23 to finalize the development program.
- The National Economic Council (NEC) is expected to approve macroeconomic targets and the final PSDP by May 26 or 27.
Due to the lower budget ceiling, several provincial development projects will be scaled down, and around 200 slow-moving projects are expected to be dropped from the plan.