ISLAMABAD: The Ministry of Finance has released the schedule for the preparation and presentation of the 2025-26 federal budget, directing all ministries, divisions, departments, and government entities to submit their expenditure demands by February 6, along with anticipated savings for the current fiscal year.
As per the budget calendar and circular issued to stakeholders, the federal budget is expected to be presented in the National Assembly during the first week of June, adhering to the provisions of Articles 78 to 88 of the Constitution and the Public Finance Act 2019.
The finance ministry has requested estimates of receipts and expenditures from all provincial governments, federal ministries, and departments for the next fiscal year, as well as revised estimates for the current fiscal year, by February 6. This will ensure that the budget document for FY26 is finalized by the third week of May.
As part of the plan, the finance ministry will present the mid-year budget review report before the National Assembly in February. Stakeholders are required to submit actual data for FY24, revised estimates for FY25, and FY26 budget estimates, along with other development-related figures and revenue details.
The budget call letter for 2025-26 largely mirrors the previous yearβs, but this year includes new requirements for identifying and tagging green (climate) components of revenue as per International Monetary Fund (IMF) and other lender requirements. Gender budgeting guidelines have also been updated.
According to the calendar, the Ministry of Finance plans to seek cabinet approval for the Budget Strategy Paper for 2025-28 by April 18 and present it to parliament for discussions and proposals. The finance ministry aims to issue indicative budget ceilings for both current and development budgets by April 21. The Annual Planning Coordination Committee (APCC) will meet in the first week of May to recommend the Public Sector Development Programme to the National Economic Council (NEC) for approval in the second week of May.
All stakeholders must ensure the timely submission of receipts, as well as current and development expenditure estimates, to the Budget Wing of the Finance Division by February 6. The remaining information should follow the schedule outlined in the budget calendar.
These entities must also provide the actual foreign exchange budget for FY24, revised estimates for FY25, and budget estimates for FY26, in line with the specific instructions and general guidelines.
The Demand Review Committee will review and approve budget estimates, as well as any additional expenditure proposals from ministries. The committee will also evaluate past performance, current-year budget allocations, and medium-term ceilings, with a focus on the federal government’s policy priorities and service delivery outcomes.
The Ministry of Planning and Development will issue the demand-wise ceilings for the development budget, followed by meetings of the APCC and NEC to approve the annual plan, which will set macroeconomic targets and development budgets. The government targets the presentation of the budget to the federal cabinet and parliament no later than the first week of June.
