Pakistan Federal Budget 2025–26 to Be Presented on June 10: Key Highlights and Expectations

The Government of Pakistan has publicly publicized that the Federal Budget 2025–26 will be accessible on Tuesday, June 10, 2025, in the National Assembly. This confirmation follows a brief postponement from the formerly date of June 2, due primarily to ongoing debates with the International Financial Fund (IMF) over financial targets, tax reforms, and economic performance expectations.

Moreover, the Pakistan Economic Survey 2024–25, which offers a complete assessment of the country economic performance in the outgoing fiscal year, will be exposed on June 9, 2025, a day preceding to the budget.

Why Was the Budget Delayed?

Originally scheduled for June 2, the budget presentation was postponed to June 10 to deliver more time for discussions with the IMF concerning fiscal discipline and financial arrangement with international financial benchmarks.

Furthermore, the new date allows the government to strategically present the budget after Eid-ul-Adha, which is expected around June 7, thereby make sure maximum participation from law makers and stake holders in the economic discourse.

Key Areas of Focus in the Upcoming Budget

1. Tax Reforms and Revenue Generation

To meet IMF conditions and bridge the fiscal shortfall, the government is expected to implement complete tax reforms in the 2025–26 budget:

• Property Tax Framework: All provinces will supposedly roll out a new IMF-backed property tax system, starting in the next fiscal year, aimed at capturing unused revenue potential in urban real estate markets.
• Salaried Class Relief: The government has proposed a 10% tax relief for the salaried class to pad the effects of ongoing inflation and improve disposable income.
• Petroleum Levy Hike: A proposed increase in the petroleum tax is also on the table to boost federal revenue, though it may raise fuel prices and transportation costs.

2. Development Expenditure

Despite rising economic challenges, the government plans to allocate Rs. 921 billion toward development expenses. However, this figure represents a 16% reduction compared to last year allocations. As a result, nearly 200 development projects may be shelved or delayed due to constrained resources (Dawn).

3. Defense Spending

In light of growing regional tensions—especially following recent cross-border incidents—the government is expected to increase defense spending by 18%, reaching over Rs. 2.5 trillion. This extensive rise reflects strategic rearmament and military preparedness objectives.

4. Debt Servicing and Fiscal Deficit

Debt servicing continues to dominate Pakistan fiscal landscape, with interest payments likely to cross Rs. 9,800 billion in FY 2025–26. The fiscal deficit is estimated at 6.9% of GDP, requiring further copying and international support (Wikipedia – Pakistan Federal Budget).

Anticipated Economic Indicators

The upcoming budget is expected to reflect the following macroeconomic estimates:

• Total Revenue: Rs. 17,815 billion
• Total Expenditure: Rs. 18,900 billion
• Fiscal Deficit: 6.9% of GDP
• Interest Payments: Rs. 9,800 billion

These projections prove the growing difficulty of managing Pakistan macroeconomic stability, especially in a climate of rising global rise and domestic political doubts (Wikipedia – Federal Budget 2024–25).

IMF’s Role and Expectations

The IMF remains a central player in guiding Pakistan’s fiscal reforms. In its recent evaluations, the IMF highlighted the need for:

• Expanding the tax base
• Rationalizing subsidies
• Strengthening governance and transparency

Following to these conditions is critical for Pakistan to secure the next tranche of its extended fund facility, which will also influence foreign investor confidence and credit ratings.

Public and Stakeholder Expectations

The budget will be closely inspected by different sections of society:

• Salaried Workers: Expect greater relief from income tax to cope with rising living costs.
• Business Sector: Looks for growth-enabling policies, low-interest loans, and reduction in red tape.
• Agricultural Sector: Pursues subsidies on fertilizers, seeds, and power usage.
• Social Development Advocates: Demand higher investments in education, health, and poverty mitigation programs.

Each of these groups will be watching to see if the government can strike a balance between fiscal consolidation and socio-economic up lift ment.

Conclusion

The Federal Budget 2025–26 is composed to be one of the most important financial blueprints in recent history. From IMF compliance and debt sustainability to tax relief and development trade-offs, every component will influence the country economic direction.

As the budget is presented on June 10, all eyes will be on how the government handles the balancing act between growth and severity, especially amid geo political doubts and domestic challenges.

1. When will Pakistan’s Federal Budget 2025–26 be presented?

Answer: The government has announced that the Federal Budget 2025–26 will be presented on Tuesday, June 10, 2025, in the National Assembly.

2. What are the key priorities of the 2025–26 budget?

Answer: The main priorities include tax reforms, revenue generation, development spending, increased defense budget, and efforts to meet IMF fiscal targets. Relief for the salaried class and potential rambles in petroleum charges are also part of the proposal.

3. Why was the budget presentation date changed from June 2 to June 10?

Answer: The date was shifted to allow time for further negotiations with the IMF, align budgetary decisions with Eid-ul-Adha holidays, and make sure full participation of representatives.

4. Will there be any tax relief for the salaried class in this budget?

Answer: Yes, a 10% tax relief is proposed for salaried individuals to help ease the burden of rise and improve purchasing power.

5. How does this budget impact Pakistan’s deal with the IMF?

Answer: The IMF is closely monitoring the budget to ensure compliance with its loan program conditions, including tax broadening, reduction of subsidies, and fiscal discipline. Devotion to these will be important for receiving further disbursements.