The federal government will present the budget for the fiscal year 2025–26 on June 2, just ahead of Eid ul Azha, Planning Minister Ahsan Iqbal said at a press briefing.
The budget will propose a Rs921 billion allocation for the Public Sector Development Programme (PSDP), marking a 16 per cent cut from the revised Rs1.1 trillion set for the current fiscal year.
The reduction follows the Ministry of Finance’s decision to cap development spending despite the Planning Commission’s initial request for Rs2.9 trillion, based on demands from various ministries.
Speaking at the press conference, Iqbal said he would push for a higher allocation — at least Rs1.6 trillion — to ensure sufficient rupee funding for foreign-assisted projects, which require Rs700 billion in local currency counterpart.
So far, Rs900 billion has been authorised for release under the current PSDP, with more expected in the remaining weeks of the fiscal year, he said.
The Annual Plan Coordination Committee is set to meet on May 23 to finalise next year’s development blueprint. The National Economic Council — chaired by the prime minister and including chief ministers — is expected to review and approve macroeconomic targets and the PSDP by May 26 or 27.
With the budget ceiling lowered, federal planners will scale back provincial development schemes and scrap about 200 projects that have seen little progress.
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