Budget delayed amid IMF, coalition issues

ISLAMABAD: The federal government has postponed the announcement of the 2026-27 budget until next week as it works to resolve key disagreements over spending allocations, IMF conditions, and coalition partner demands.

Officials are seeking additional fiscal space by revising development spending, power subsidies, and social welfare allocations. Discussions are also underway with coalition partner PPP regarding development projects and resource distribution.

The budget is now expected to be presented on June 8 or June 10, depending on the resolution of outstanding issues.

The government is also negotiating with the IMF over expenditure adjustments and pursuing support from provinces for greater contributions toward social welfare spending.

Meanwhile, debates continue over tariff reductions, customs duty reforms, and trade liberalisation commitments under the IMF programme, amid concerns about their impact on Pakistan's economy, imports, and exports.