The federal government is set to present the budget for the fiscal year 2025–26, with an estimated outlay of around Rs20 trillion, in Parliament on June 2, official sources confirmed.
According to insiders from the Finance Ministry, the International Monetary Fund (IMF) has expressed satisfaction with Pakistan’s budget priorities, endorsing the proposed revenue targets and policy measures.
The IMF is reportedly content with the Federal Board of Revenue’s (FBR) tax collection goals, as well as the government’s approach toward subsidies, circular debt, and debt servicing.
This endorsement comes as Pakistan continues to navigate the 37-month Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) arrangements with the IMF. Under these agreements, the country is set to receive disbursements of $1 billion and $1.4 billion, respectively, in May 2025.
The Pakistan Economic Survey 2024–25, which reviews the nation’s economic indicators and performance, is scheduled for release on June 1. In the lead-up to the budget, key meetings are being expedited. The Annual Plan Coordination Committee (APCC) will convene on May 26 to finalize development targets, while the National Economic Council (NEC), chaired by Prime Minister Shehbaz Sharif and attended by provincial chief ministers, is expected to meet on May 31.
Meanwhile, sources suggest that the upcoming budget may include a significant revision in the capital gains tax (CGT) on real estate transactions. The government is reportedly considering increasing the CGT rate from the current 15 percent to as high as 35 percent. This potential hike aims to align property taxation with corporate sector rates and tap into the real estate sector’s revenue potential