Pakistan to Present Rs17.6 Trillion Federal Budget for FY2025–26
Islamabad – June 10, 2025:
Pakistan’s federal government is set to present the much-anticipated Budget 2025–26 in the National Assembly today, with an estimated size of Rs17.6 trillion. The budget will be formally unveiled by Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, marking his second budget speech since taking office.
The session also includes the laying of the Finance Bill 2024 before the Senate, as per Article 73 of the Constitution.
Key Highlights of the Upcoming Budget:
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Gross Federal Revenues: Rs19.4 trillion (up Rs1.6 trillion from last year)
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Tax Collection Target: Rs14,130 billion
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Direct Taxes: Rs6,450 billion
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Sales Tax: Rs4,900 billion
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Excise Duties: Rs1,150 billion
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Customs Duties: Rs1,740 billion
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Petroleum Levy: Projected at Rs1,311 billion
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Non-Tax Revenue: Rs4,000 billion
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Provincial Surplus: Estimated at Rs1,200 billion
The government aims to balance revenue expansion with fiscal responsibility, addressing growing demands on infrastructure, social protection, energy security, and debt servicing.
Parliamentary Schedule for Budget Deliberations
According to a formal release by the National Assembly Secretariat, Speaker Sardar Ayaz Sadiq has approved the following schedule for deliberation:
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June 10: Budget 2025–26 presentation
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June 11–12: Recess
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June 13–21: General debate on the budget
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June 22: No session
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June 23: Discussion on charged expenditures
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June 24–25: Voting on Demands for Grants and Cut Motions
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June 26: Approval of Finance Bill 2025
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June 27: Supplementary grants and wrap-up
Speaker Sadiq confirmed that all parliamentary parties will be given adequate time to participate in accordance with house procedures. This is crucial, especially given the delicate political climate and looming expectations from the business community and IMF observers.
Fiscal Policy Objectives
Finance Ministry insiders indicate that this budget seeks to:
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Widen the tax base while ensuring progressive taxation
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Strengthen public sector development programs (PSDP)
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Meet IMF benchmarks under the expected extended fund facility
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Manage circular debt and energy subsidies
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Build foreign exchange reserves through fiscal discipline
This budget will also be a litmus test of Aurangzeb’s technocratic approach to policy—balancing economic realism with political feasibility as Pakistan faces mounting inflation, public debt, and external sector vulnerabilities.
What Comes Next?
While investors and markets await granular details on sectoral allocations, subsidies, and development spending, the next two weeks will determine how effectively the government can push its fiscal agenda through Parliament.
With the IMF negotiation round resuming shortly after the budget session, the stakes are high.
The finance minister’s budget speech is expected to be closely scrutinized by global creditors, business chambers, and households alike—each looking for signs of policy clarity, relief, and reform.