The federal budget session has been rescheduled to take place on Wednesday, June 10, at 5:00 PM. Preparations are underway, with official notifications for summoning both the National Assembly and the Senate already issued. Although the parliamentary session originally planned for June 5 will proceed to discuss broader economic issues, the formal presentation of the fiscal year 2026-27 budget has been deferred to the new date. The official notification regarding this change is expected to be released today.
In a significant development, the delay is largely attributed to ongoing negotiations with the International Monetary Fund (IMF). Pakistan is currently engaged in a USD 7 billion bailout programme aimed at stabilizing the country’s macroeconomic situation. Discussions continue over critical fiscal measures necessary to close financing gaps and meet programme conditions. A major point of contention involves the adjustment of provincial fiscal surpluses to support federal expenditures, which is seen as essential for finalizing the budget framework.
Meanwhile, internal political dynamics have also influenced the postponement. Minister for Parliamentary Affairs Tariq Fazal Chaudhry explained that the government opted to shift the date to allow more time for consultations with coalition partners. He emphasized that securing the backing of allied parties remains a significant challenge for coalition administrations, and the additional time will facilitate building consensus on budgetary issues. The Minister dismissed rumors linking the delay to upcoming elections in Gilgit-Baltistan.
The rescheduling follows the deferment of the National Economic Council (NEC) meeting, which was to be chaired by Prime Minister Shehbaz Sharif. The NEC was expected to review a combined federal and provincial development outlay of Rs4.715 trillion for the next fiscal year. Reports indicate a proposed Rs200 billion increase in the federal Public Sector Development Programme (PSDP), potentially raising its allocation to around Rs1.326 trillion.
Despite these administrative adjustments, the government continues to maintain close coordination with its key coalition partner, the Pakistan Peoples Party, aiming to preserve a cooperative relationship ahead of the formal budget presentation on June 10.
