Islamabad: The federal government has entered the final stage of preparations to present the budget for the upcoming fiscal year 2026-27 in the National Assembly on June 12, while an important meeting of the National Economic Council (NEC) has also been convened in which the development plans of the federation and the provinces will be finalised.
President Asif Ali Zardari has summoned sessions of the National Assembly and the Senate on the advice of Prime Minister Shehbaz Sharif. According to parliamentary sources, although both sessions have been declared budget sessions, it is likely that the federal budget will be presented in the National Assembly on Thursday, June 12.
Minister for Parliamentary Affairs Tariq Fazal Chaudhry has also indicated that the budget is likely to be presented in the parliament this week, while Finance Minister Muhammad Aurangzeb will present the budget documents in the house.
According to sources, an important consensus has been reached between the federal government and the provinces on financial matters, under which the revenue shortfall of about Rs 800 billion expected in the current fiscal year will be met jointly. Similarly, the federation and the provinces will adopt a joint strategy to create additional financial capacity in the next fiscal year as well.
According to reports, as a result of consultations between the Pakistan Peoples Party and the Muslim League (N), it has been agreed to maintain the share of the provinces at the level of the current fiscal year. Under this arrangement, if the FBR’s receipts increase, a large part of the additional amount will remain with the federal government to ensure fiscal stability and meet development priorities.
Sources say that for this purpose, provincial development programmes and some other expenses can be reduced. In this context, the meeting of the National Economic Council to be held today is of exceptional importance, as it will review federal and provincial development projects.
The meeting will review the Annual Plan 2026-27, Public Sector Development Program (PSDP), provincial annual development programmes and socio-economic indicators in detail. The chief secretaries of the four provinces will also give a briefing on their development programmes.
According to economic experts, fiscal coordination between the federation and the provinces is a positive development in the current economic conditions that can further stabilise the budgeting process. However, the impact of the possible reduction in development spending will depend on the budget proposals that will be presented in the coming days.
