Pakistan to present federal budget on June 2 following IMF consultation

Pakistan will present its federal budget for the fiscal year 2025–26 on June 2, following consultations with the International Monetary Fund (IMF). The Economic Survey for the outgoing fiscal year will be released a day earlier, on June 1.

According to information from Islamabad, the government and the IMF are holding virtual discussions, focusing on fiscal strategies to boost revenue collection in the coming year.

The budget size is expected to be approximately PKR 20,000 billion.

Key preparatory meetings are scheduled ahead of the budget presentation. The Planning Commission will convene on May 26, followed by a meeting of the Economic Coordination Committee (ECC) on May 31. That session will be chaired by Prime Minister Shehbaz Sharif and attended by all four provincial chief ministers.

Sources indicate that new taxes worth PKR 430 billion are being considered. The revenue target for the fiscal year 2025–26 is expected to be set at PKR 14,300 billion, while the collection for the current year may close at around PKR 13,275 billion.

The IMF has reportedly agreed to several key budget proposals, particularly those related to circular debt management, subsidies, debt servicing, and overall expenditures.

Despite economic challenges, the government aims to increase tax revenue by PKR 1,030 billion in the next fiscal year through enforcement and policy measures.

Efforts are also underway to bring the tobacco, beverage, and real estate sectors into the formal tax net.