Government aims to finalize budget amid ongoing consultations with IMF
Key Takeaways:
- The federal government plans to present the budget for fiscal year 2025-26 before Eid ul-Adha, likely between June 3-5.
- Consultations with the IMF are underway to finalize budgetary targets, with an IMF mission scheduled to visit Pakistan in May.
- Economic forecasts for Pakistan in 2025-26 vary, with the ADB projecting 3% growth and the IMF downgrading its forecast to 3%.
Islamabad, Pakistan – April 17, 2025 – The Pakistani government is preparing to present the federal budget for the fiscal year 2025-26 before the upcoming Eid ul-Adha holidays. This was reported in a recent analysis by Samaa TV, in an article titled “Govt to present federal budget 2025-26 before Eidul Adha” authored by Shakeel Ahmed. The article, available at Govt to present federal budget 2025-26 before Eidul Adha, indicates that “[A proposal to convene the budget session of parliament earlier than usual is under consideration to avoid delays due to the Eid holidays. The budget is expected to be tabled in the National Assembly between June 3 and 5],” according to Ahmed.
The government is also engaged in crucial consultations with the International Monetary Fund (IMF) to align budgetary targets with international lender expectations. An IMF mission is scheduled to visit Pakistan on May 14 to review and finalize key figures, including the annual tax revenue target and the development budget. Finance Minister Muhammad Aurangzeb is expected to attend the Spring Meetings of the IMF and the World Bank in Washington from April 21-26, which will be critical for these discussions.
Pakistan’s economic outlook for 2025-26 is cautiously optimistic. The Asian Development Bank (ADB) projects a 3% growth for Pakistan in the fiscal year 2025-26, with inflation expected to decline further. ADB predicts 3% growth for Pakistan, inflation to drop further – Samaa TV The IMF, however, has downgraded its GDP growth forecast for Pakistan to 3% for 2025.
Eid ul-Adha is expected to fall around June 7-9, 2025. The government’s decision to present the budget before the Eid holidays highlights its commitment to addressing critical economic issues promptly.
