ISLAMABAD — The federal budget for the upcoming fiscal year (FY2026-27) will officially be presented in the National Assembly on Friday, June 12, following a finalized timeline from the Ministry of Finance. Additionally, the government will unveil the pre-budget Pakistan Economic Survey for the outgoing fiscal year (FY2025-26) tomorrow afternoon.
Key Details
- Finance Minister Muhammad Aurangzeb is scheduled to introduce the FY2026-27 federal budget on Friday.
- The Pakistan Economic Survey for FY2025-26 will be launched by the finance minister on Thursday afternoon.
- President Asif Ali Zardari has formally summoned the legislative budget sessions for both the National Assembly and the Senate.
- The National Economic Council (NEC) successfully convened on Wednesday to solidify national development blueprints after a series of delays.
- A structural deal between the PML-N and the PPP will freeze provincial revenue shares at current-year levels to generate funds for central strategic needs.
Consensus Reached Following NEC Deadlock
The finalization of the budget calendar follows weeks of political friction that repeatedly stalled national financial planning. The National Economic Council (NEC)—the country’s highest economic decision-making body—met on Wednesday under the chairmanship of Prime Minister Shehbaz Sharif to approve the macroeconomic framework. The session had previously been postponed three separate times due to severe disagreements over the federal government’s demand to reclaim over Rs1 trillion from provincial pools.
Following the high-level meeting, Prime Minister Sharif stated that the federal government engaged in consultations with provincial leadership with extreme seriousness, making decisions geared entirely toward the best interests of the country.
Revenue Sharing Adjustments
The breakthrough came after the ruling PML-N and its primary coalition partner, the PPP, established a comprehensive fiscal framework. Faced with an estimated Rs800 billion revenue shortfall during the current fiscal year, the political leadership agreed to slash public development and operational expenditures across all tiers of government. This coordination aims to clear the current deficit while generating expanded fiscal room for critical national requirements next year.
Under this new policy arrangement, the financial shares allocated to the provinces from the federal divisible pool under the National Finance Commission (NFC) award will remain frozen at their current position. Any additional tax revenues collected by the Federal Board of Revenue (FBR) in the upcoming fiscal year that exceed this year’s baseline will be fully retained by the federal government.
