ISLAMABAD (MNN); Parliamentary Affairs Minister Tariq Fazal Chaudhry announced on Tuesday that the federal budget for fiscal year 2026-27 is likely to be presented on June 12, while summaries have been forwarded to convene budget sessions of the National Assembly and Senate on June 10.
In a post on X, the minister indicated that preparations for the budget process were underway, although the official date for the budget presentation has yet to be formally confirmed.
The uncertainty stems from ongoing negotiations between the federal government, coalition partners and provincial administrations over Islamabad’s demand for more than Rs1 trillion to meet strategic and national requirements. As a result, the government has not yet issued a revised schedule for the release of the Economic Survey of Pakistan or the federal budget.
Meanwhile, the meeting of the National Economic Council (NEC), originally scheduled for Monday, was postponed for the third time at the last moment. The delay comes amid continuing disagreements over a proposal to freeze provincial shares in the federal divisible pool under the National Finance Commission (NFC) Award.
Adviser to the Khyber Pakhtunkhwa Chief Minister on Finance, Muzzammil Aslam, said the federal government had informed provinces that their NFC allocations for the next fiscal year would remain at the current level. According to him, any additional revenue generated beyond the existing share would have to be surrendered to the federal government.
He said provincial governments strongly opposed the proposal, arguing that it would create budget deficits and significantly restrict their ability to manage administrative and development expenditures. Aslam added that federal officials suggested provinces could offset the impact by freezing salaries and limiting development projects.
He further noted that there was no certainty regarding the next NEC meeting, as several long-standing financial and constitutional issues remained unresolved. According to Aslam, the lack of consensus between the Centre and provinces could lead to further delays in the budget process, with no immediate breakthrough visible.
Despite these challenges, the federal government and its key coalition ally, the Pakistan Peoples Party (PPP), have made progress in their budget consultations.
On Monday, the Pakistan Muslim League-Nawaz (PML-N)-led government and the PPP reached an understanding on the broader framework of the upcoming federal budget during a third round of discussions held at Aiwan-e-Sadr.
The meeting was chaired by President Asif Ali Zardari, while Prime Minister Shehbaz Sharif led the government delegation. Senior political leaders from both parties participated in the talks, which were conducted in two phases, including delegation-level discussions and a final session involving top leadership.
Federal Minister for Planning Ahsan Iqbal said both sides had achieved a complete understanding regarding the Public Sector Development Programme (PSDP) and the overall development budget. He added that further consultations at both political and technical levels would continue to address remaining financial and budgetary concerns.
