The Ministry of Finance has initiated the preparation process for the federal budget for the fiscal year 2025-26, aiming to present it in the National Assembly during the first week of June 2025. This schedule aligns with the procedures outlined in Articles 78 to 88 of the Constitution and the Public Finance Act of 2019.
To meet this timeline, the Ministry has issued a budget call circular to all federal ministries, divisions, departments, and provincial governments. These entities are required to submit their expenditure demands and anticipated savings for the current fiscal year by February 6, 2025. The submissions should include actual data for FY2023-24, revised estimates for FY2024-25, and budget estimates for FY2025-26.
A notable addition to this year’s budget call is the requirement to identify and tag green (climate-related) components of revenues. This initiative aligns with the expectations of international lenders, including the International Monetary Fund (IMF), and reflects Pakistan’s commitment to addressing climate change. Additionally, instructions related to gender budgeting have been updated to promote inclusivity and equitable resource allocation.
The budget preparation calendar outlines several key milestones:
- Mid-Year Budget Review: The Ministry plans to present a mid-year review report to the National Assembly in February 2025, providing an assessment of the current fiscal performance.
- Budget Strategy Paper: By April 18, 2025, the Ministry aims to seek the Cabinet’s approval for the Budget Strategy Paper for 2025-28, which will subsequently be presented to Parliament for discussion and input.
- Indicative Budget Ceilings: Indicative ceilings for current and development budgets are scheduled to be issued by April 21, 2025, guiding entities in finalizing their budget proposals.
- Development Program Approvals: The Annual Planning Coordination Committee (APCC) is expected to convene in the first week of May 2025 to recommend the Public Sector Development Programme (PSDP) to the National Economic Council (NEC), which will consider approval in the second week of May.
Principal Accounting Officers (PAOs) are tasked with submitting detailed estimates of receipts and expenditures, including foreign exchange budgets, in accordance with specific instructions and general guidelines provided by the Ministry. The Demand Review Committee, comprising representatives from the Finance Division, Planning, Development and Special Initiatives Division, and the Economic Affairs Division, will review these submissions. PAOs may be invited to present their budget proposals, focusing on service delivery outputs and policy priorities outlined by the federal government.
This structured approach underscores the government’s commitment to fiscal discipline, transparency, and strategic resource allocation, ensuring that the budget aligns with national priorities and international obligations.
