——– Proposes 43.48% slash in IT development budget
——– NEC approves Rs1,000 bln development outlay for budget 2025–26
Staff Report
ISLAMABAD: The Pakistan government is likely to unveil Rs17.68 trillion budget 2025-26 on June 10, media reported on Wednesday, citing well-informed sources.
According to details, a significant decline in the policy rate is expected to reduce expenditure on loans and interest payments by approximately Rs1,300 billion in budget 2025-26.
Sources suggest that the size of the upcoming federal budget could be around Rs17.8 trillion, which is Rs 900 billion less than the current fiscal year’s budget of Rs18.7 trillion.
The upcoming budget 2025-26 will place strong emphasis on austerity measures in Pakistan, which will be implemented rigorously.
Sources also indicate that the purchase of new vehicles for all federal ministries and departments will be prohibited. Additionally, ministries will be expected to limit their electricity and gas expenses.
The IMF has demanded a ban on the issuance of unnecessary supplementary grants, and any emer-gency supplementary funds will only be allowed in the event of natural disasters, the sources said.
According to estimates, Rs8,685 billion will likely be allocated for interest payments on loans. Of this amount, Rs7,503 billion is expected to go towards domestic debt servicing, while Rs1,119 billion will be allocated for servicing foreign debt. The federal government is also estimating a subsidy allocation of Rs1,367 billion and grants worth Rs1,619 billion.
The budget deficit for the next fiscal year is expected to stand at Rs6,632 billion. The federal govern-ment anticipates receiving a surplus of Rs1,220 billion from the provinces to help offset this deficit.
Furthermore, the Benazir Income Support Programme may receive an allocation of Rs716 billion. The quarterly cash stipend under the programme is expected to be increased from Rs13,500 to Rs14,500 by January 2026.
Earlier, The federal government has decided to reduce the development budget of the Ministry of Information Technology and Telecommunication (IT) in the upcoming budget 2025-26.
According to details, a cut of Rs 10.4 billion has been proposed, amounting to a 43.48% reduction com-pared to the previous fiscal year. For the budget 2025-26, the development funds for the IT ministry are proposed at Rs13.52 billion. Out of this, Rs3.64 billion will be provided through domestic resources, while Rs9.88 billion is expected to come from external sources.
In the previous fiscal year, the ministry’s development budget stood at Rs23.92 billion, highlighting the substantial scale of the proposed reduction.
The Pakistan government is likely to unveil Rs17.68 trillion budget 2025-26 on June 10, well-placed sources said.
According to details, a significant decline in the policy rate is expected to reduce expenditure on loans and interest payments by approximately Rs1,300 billion in budget 2025-26.
Sources suggest that the size of the upcoming federal budget could be around Rs17.8 trillion, which is Rs 900 billion less than the current fiscal year’s budget of Rs18.7 trillion.
The upcoming budget will place strong emphasis on austerity measures in Pakistan, which will be im-plemented rigorously.
Sources also indicate that the purchase of new vehicles for all federal ministries and departments will be prohibited. Additionally, ministries will be expected to limit their electricity and gas expenses.
