The federal government will unveil the budget for fiscal year 2025-26 on June 2, just days before Eid Ul Azha, Planning Minister Ahsan Iqbal announced at a press conference.

The Public Sector Development Program (PSDP) is expected to receive an allocation of Rs. 921 billion, marking a 16 percent reduction from the revised Rs. 1.1 trillion allocated for the current fiscal year. This allocation falls significantly short of the Rs. 2.9 trillion requested by the Planning Commission based on ministerial requirements, as the Ministry of Finance approved an Indicative Budget Ceiling (IBC) of Rs. 921 billion.

Minister Iqbal indicated plans to advocate for an increase in the PSDP allocation to at least Rs. 1.6 trillion to secure Rs. 700 billion in rupee funding for foreign-aided projects.

To date, Rs. 900 billion has been authorized for disbursement under the current PSDP, with further approvals anticipated in May and June.

The Annual Plan Coordination Committee is scheduled to meet on May 23 to finalize the development program, while the National Economic Council is expected to approve macroeconomic targets and the PSDP by May 26 or 27.

Due to the reduced budget ceiling, provincial projects under the PSDP will face cuts, and approximately 200 slow-moving projects are likely to be terminated.