ISLAMABAD — The federal budget for the upcoming fiscal year (FY2026-27) is expected to be presented in parliament on Friday, June 12, following a period of intense financial negotiations and scheduling uncertainty. Minister for Parliamentary Affairs Tariq Fazal Chaudhry confirmed that formal summaries have been forwarded to convene the preparatory legislative sessions for both the National Assembly and the Senate on Wednesday, June 10.
Key Highlights
- The FY2026-27 federal budget is tentatively scheduled for parliamentary presentation on June 12.
- Administrative proposals seek to convene the National Assembly and Senate budget sessions on June 10.
- Timeline adjustments follow a fiscal standoff over the federal government’s request for over Rs1 trillion from provincial resources.
- The National Economic Council (NEC) session was delayed for a third time due to disputes regarding the NFC Award divisible pool.
- The PML-N-led ruling coalition secured a broad fiscal consensus with its key ally, the PPP, during high-level leadership talks.
National Economic Council Delayed Amid NFC Award Dispute
Prior to the revised timeline announcement, the budget schedule faced significant delays as the federal government, its coalition partners, and provincial administrations worked to resolve differences over the division of state revenues. A meeting of the National Economic Council (NEC) was postponed for the third consecutive time on Monday as discussions stalled over the central government’s demand to secure more than Rs1 trillion from the provinces for strategic requirements.
Muzzammil Aslam, the finance adviser to the Khyber Pakhtunkhwa chief minister, revealed that the federal team proposed freezing provincial shares under the National Finance Commission (NFC) Award at current-year levels. Under this proposal, any revenue generated above the current baseline would be returned to the federal government. Provincial representatives strongly opposed the measure, warning it would trigger localized budget deficits and impede basic governance. In response, federal negotiators suggested that provincial governments limit local development projects and freeze public sector salaries to balance their books.
Ruling Coalition Secures Policy Alignment
While center-province revenue sharing remains a point of contention, the federal government successfully stabilized its internal political front. Following a third round of negotiations at the Aiwan-i-Sadr presided over by President Asif Ali Zardari, the ruling PML-N and its primary political ally, the PPP, established a unified position on the core components of the impending budget.
Prime Minister Shehbaz Sharif led the PML-N delegation in the talks, which concluded with an agreement on the Public Sector Development Programme (PSDP) and the overarching development budget framework. Federal Minister Ahsan Iqbal confirmed that both parties reached a complete understanding on these primary financial areas, adding that top-level consultations would continue to resolve the remaining minor budgetary details before the June 12 presentation.
