The Government of Pakistan is likely to announce the national budget for the fiscal year 2025-26 on June 10, with a total size expected to be around Rs17.8 trillion. This marks a reduction of approximately Rs900 billion compared to the current year’s budget of Rs18.7 trillion.
According to reports, one of the major highlights of the upcoming budget could be a significant drop in the policy rate. This is expected to lower the government’s loan and interest-related expenses by nearly Rs1,300 billion.
The reduction in the policy rate would not only ease the financial burden but may also create room for more development spending in key sectors.
Sources suggest that the government is planning to introduce tough austerity measures in the new budget. The main aim will be to cut down on unnecessary government expenses and improve the overall financial discipline of the country.
Officials are also expected to outline policies that encourage fiscal responsibility while trying to maintain support for critical areas like education, health, and infrastructure. However, the priority will remain on reducing the fiscal deficit and controlling inflation.
This budget comes at a time when Pakistan continues to face economic challenges, including high debt and inflation.
By focusing on reduced spending and improved efficiency, the government hopes to stabilize the economy and create a more sustainable financial path for the future.Further details will be shared when the official budget is presented to Parliament on June 10.
