Pakistan likely to unveil Rs17.68 trillion budget on June 10

The Pakistan government is expected to present a Rs17.68 trillion budget for the fiscal year 2025-26 on June 10. This amount is about Rs900 billion less than the current year’s Rs18.7 trillion budget. The decrease is mainly due to an expected drop in the policy interest rate, which could help reduce loan and interest payments by around Rs1,300 billion.

The upcoming budget will focus on strict austerity measures. These include a ban on the purchase of new vehicles for federal ministries and departments, and limits on electricity and gas use across government offices. The IMF has also called for a stop to unnecessary supplementary grants, allowing them only in emergencies like natural disasters.

About Rs8,685 billion is expected to go toward interest payments on loans. Of this, Rs7,503 billion will be used for domestic debt and Rs1,119 billion for foreign debt. The government is also planning to allocate Rs1,367 billion for subsidies and Rs1,619 billion for grants.

The projected budget deficit stands at Rs6,632 billion. To help cover this, the federal government expects to receive a surplus of Rs1,220 billion from the provinces. The Benazir Income Support Programme (BISP) is likely to get Rs716 billion, with the quarterly cash stipend expected to increase from Rs13,500 to Rs14,500 by January 2026.