WEBDESK: The federal government may delay the presentation of budget 2025–26 once again due to the Eid ul Adha holidays and ongoing discussions with the International Monetary Fund (IMF).
Initially, the government planned to present the budget 2025–26 in the first week of June, likely between June 3 and 5. This was to avoid any disruptions caused by the upcoming Eid holidays. However, recent developments have pushed the expected date to June 10.
The expected celebration date of Eid ul Adha, between June 7 and 8, has made things more complicated than before. The National Economic Council (NEC) meeting and the release of the Economic Survey have been set for June 9. For this reason, June 12 has been suggested as the new day for presenting the budget for the coming year.
At the same time, the government is expecting an IMF mission to arrive in Islamabad on May 14. With its help, the government can set major components of the coming budget such as taxes to collect and budget lines for development. Such discussions are essential because Pakistan wishes to launch a different long-term loan program with the IMF.
Finance Minister Muhammad Aurangzeb has also shared that budget 2025–26 will offer relief for the salaried class. He emphasised that the budget will not just be about numbers, but will also provide a clear strategic direction for Pakistan’s economy.
Even though there has been no official confirmation, sources add that the ministry is preparing to fit the new dates into the budget and continue maintaining its international commitments.
IMF Conditions for Budget 2025–26
The conditions by the IMF are strict. Pakistan must live up to 11 new conditions set by the International Monetary Fund (IMF) in order to continue receiving the loan.
As required by the IMF, Pakistan will have to approve another massive Rs17.6 trillion budget which is very likely to result in higher taxes.
The IMF also expects Pakistan to increase electricity taxes throughout the country to control circular debt and remove controls on the import of used cars. Through government orders, the IMF has required provinces to introduce the new Agriculture Income Tax laws using a broad plan.
As part of the plan, the government would build an operating system for processing tax returns, identify and register taxpayers, distribute tax information and aim to improve compliance.
Based on the IMF agreement, the Parliament would also approve a change that overrides the Rs3.21 limit on the debt service surcharge. As a result, good electricity consumers would end up covering for the wasteful use of electricity elsewhere.
Read more: IMF team to arrive in Islamabad today for 2025-26 budget talks
