ISLAMABAD: Pakistan’s federal budget will not be presented on June 5 as previously expected, according to official sources.
Sources said a meeting of the National Economic Council (NEC), scheduled for June 3, has been postponed and a formal notification has been issued.
According to the notification, a new date for the NEC meeting will be announced later.
Sources said a revised date for the federal budget has yet to be finalized, although June 10 is emerging as the most likely option for its presentation.
Meanwhile, Pakistan is likely to present its federal budget on June 10, while earlier possible dates of June 8 or June 12 remain under consideration.
The postponement comes as authorities continue consultations on key economic and fiscal matters ahead of the announcement of the budget for the next financial year.
According to sources, the government is increasing the PSDP allocation by 200 billion rupees on the prime minister’s instructions. The IMF will be informed of the proposed increase, while authorities are seeking to offset the additional spending through various fiscal measures.
The NEC is expected to review a total development outlay of 4.715 trillion rupees. The federal development budget is likely to rise to 1.326 trillion rupees from the previously proposed 1.126 trillion rupees.
Provincial development allocations are expected to total 3.138 trillion rupees, including 1.45 trillion rupees for Punjab, 816 billion rupees for Sindh, 564 billion rupees for Khyber Pakhtunkhwa and 308 billion rupees for Balochistan.
More read, PM Shehbaz seeks Rs200bn increase in upcoming development budget
Earlier, Prime Minister Shehbaz Sharif has reportedly termed the proposed Rs1.126 trillion allocation for the federal Public Sector directed the Finance Ministry to make budget adjustments to increase the size of the Public Sector Development Program (PSDP) by Rs200 billion in the upcoming fiscal year.
The move aims to boost funding for development projects across the country. However, the Federal Board of Revenue (FBR) has expressed reservations about generating an additional Rs200 billion in revenue to support the increase.
