Pakistan's federal budget for fiscal year 2025-26 is unlikely to be presented on June 5 as previously scheduled, a government source and local media reported on Wednesday. The delay is primarily due to unresolved fiscal measures with the International Monetary Fund (IMF).
Budget Postponement Details
The budget might instead be presented on June 10, according to the source and Geo News TV. The government source, who spoke on condition of anonymity, stated that the June 5 parliamentary session will proceed as planned, offering a platform for both the government and the opposition to debate the budget. However, the government has not officially provided a reason for the delay.
IMF Negotiations and Fiscal Space
The source indicated that issues remain with the IMF regarding the creation of fiscal space, particularly concerning funds that provinces are expected to relinquish for federal spending. Pakistan is currently under a $7 billion IMF bailout program, which has been instrumental in stabilizing and recovering the economy.
Pakistan's finance ministry did not immediately respond to a request for comment. The budget presentation is a critical event for the country's economic direction, and any delay could impact fiscal planning and investor confidence.
