Federal budget session likely to be held on June 10 at 5pm

According to government sources, the upcoming budget session is now scheduled to convene on Wednesday, June 10, at 5:00 PM. In preparation for the financial deliberations, formal summaries for summoning both the National Assembly and the Senate have already been dispatched. While the parliamentary session originally slated for June 5 will proceed as planned to debate broader economic conditions, the formal tabling of the fiscal year 2026-27 budget has been shifted to the new date. The notification is also expected today.

Negotiations with the IMF

A primary factor behind the revised timeline is the ongoing dialogue with the International Monetary Fund (IMF). Pakistan is currently engaged in a USD7 billion bailout programme aimed at stabilising macroeconomic conditions. Sources indicate that discussions are still underway regarding key fiscal measures to bridge financing gaps and ensure compliance with programme targets. A significant “sticking point” involves provincial fiscal surpluses and their potential adjustment to support federal expenditures, a move considered crucial for finalising the budget framework.

Building Coalition Consensus

Beyond international obligations, internal political coordination has necessitated the delay. Minister for Parliamentary Affairs Tariq Fazal Chaudhry explained that the government decided to move the date to facilitate further consultations with coalition partners. He noted that securing the support of allied parties is a major challenge for coalition governments and that the additional time would help build a necessary consensus on budgetary matters. The Minister also dismissed speculations linking this postponement to elections in Gilgit-Baltistan.

Development Outlay and Administrative Delays

The rescheduling follows the postponement of the National Economic Council (NEC) meeting, which was intended to be chaired by Prime Minister Shehbaz Sharif. The NEC was set to review a combined federal and provincial development outlay of Rs4.715 trillion for the upcoming fiscal year. Reports suggest a proposed Rs200 billion increase in the federal Public Sector Development Programme (PSDP), potentially raising the allocation to approximately Rs1.326 trillion.

Despite these administrative shifts, the government continues to engage with its “reliable coalition partner,” the Pakistan Peoples Party, to maintain a positive working relationship ahead of the formal presentation on June 10.