Budget 2025–26 Pakistan Set for June 2: Major Reforms, IMF Conditions in Focus

The Government of Pakistan has officially confirmed the budget 2025-26 Pakistan date as June 2, 2025, marking a highly anticipated event as the country prepares to unveil its financial plan for the next fiscal year. “The budget 2025-26 Pakistan date is officially set for June 2, 2025, and all eyes are on Islamabad as the government prepares to unveil its financial roadmap for the upcoming fiscal year.”

This year’s budget carries special weight as it coincides with critical negotiations with the International Monetary Fund (IMF). “This year’s budget holds even greater significance as it comes at a crucial time, with Pakistan entering key policy-level negotiations with the International Monetary Fund (IMF).”

Sources within the government confirm that high-level policy talks are underway with the IMF, focusing on fiscal reform, economic stability, and revenue generation. “According to government sources, high-level discussions with the IMF are underway, with a sharp focus on fiscal reforms and sustainable economic management.”

The IMF has asked Pakistan to boost its revenue target to Rs 20 trillion for FY2025–26, a notable increase from the current Rs 17.8 trillion. “One of the key conditions laid out by the IMF is to boost Pakistan’s overall income to Rs 20 trillion in the next fiscal year.”

Among the proposed reforms are major tax cuts, especially on the construction and industrial sectors. “These include eliminating withholding taxes on raw materials used in the construction and industrial sectors, as well as on property transactions.”

Additionally, the government aims to abolish Federal Excise Duty (FED) and the super tax on property transactions while also working on increasing the tax-to-GDP ratio to 11%. “Pakistan has assured the IMF that it will aim to increase its tax-to-GDP ratio to 11%, a significant leap aimed at improving tax collection without overburdening the public.”

Relief measures for the salaried class are also under review, with potential income tax adjustments expected. “Moreover, proposals to offer tax relief for the salaried class will also be discussed during the ongoing negotiations.”

Meanwhile, Pakistan faces a $19 billion foreign debt repayment burden in the coming year. “Pakistan is expected to repay nearly $19 billion in foreign debt during the next fiscal year.”

A carbon levy is also being considered to align with international climate goals and increase revenue. “Another key aspect under consideration is the introduction of a carbon levy — a move that aligns with global environmental standards while also creating an additional revenue stream.”

As the budget date nears, expectations are high for a progressive yet realistic financial plan. “From tax reforms to debt strategies, the budget 2025 26 Pakistan is shaping up to be a decisive moment for the country’s economic future.”