The Government of Pakistan is expected to present the federal budget for the fiscal year 2025-26 on June 10, with an estimated outlay of Rs17.68 trillion, according to sources.
A major reduction in the policy rate is anticipated to lower loan and interest payment costs by around Rs1,300 billion. The projected budget size is approximately Rs17.8 trillion—about Rs900 billion less than the current fiscal year’s budget of Rs18.7 trillion.
The upcoming budget will prioritize strict austerity measures. Sources reveal that the purchase of new vehicles for all federal ministries and departments will be banned, and ministries will be directed to cut back on electricity and gas usage.
In line with IMF conditions, the issuance of unnecessary supplementary grants will be restricted. Emergency supplementary funding will only be permitted in cases of natural disasters, the sources added.
