Govt Likely to Present Budget 2026 Before June to Secure IMF Approval

The federal government is preparing to present the fiscal year 2025-26 budget in May 2025, significantly earlier than the traditional June timeline, according to sources familiar with the matter told ProPakistani. Key departments, including the Ministry of Finance and the Federal Board of Revenue (FBR), have already begun formulating budget numbers and policy proposals. This accelerated timeline appears to be linked to ongoing negotiations with the International Monetary Fund (IMF), as Pakistan seeks to complete the first review of its $7 billion Extended Fund Facility (EFF) program. “We believe it will take a few weeks to sign the Staff Level Agreement as the government may share new budgetary measures for FY26 with the IMF or present the budget in parliament earlier to secure IMF board approval before June end,” said Shankar Talreja, a senior analyst at Topline Securities. The early budget presentation would allow Pakistan to incorporate IMF-recommended fiscal measures directly into the budget document, potentially streamlining the approval process for the next tranche of funding. Talreja further noted that even if a Staff Level Agreement is reached in the near term, “the board approval may contain preconditions like passage of the FY26 budget in line with IMF guidelines.” This strategy reflects lessons learned from previous IMF program reviews, where delays between staff-level agreements and board approvals have stretched for months due to pending prior actions. By presenting the budget early, the government hopes to avoid similar delays and ensure timely disbursement of IMF funds. The upcoming budget is expected to include significant revenue measures and expenditure controls as Pakistan continues to navigate challenging economic conditions. Finance Minister Muhammad Aurangzeb has already indicated that government employees should not expect salary or pension increases in the next fiscal year, signaling the administration’s focus on fiscal discipline.