Federal budget likely to be presented on June 2

ISLAMABAD: The federal budget for the fiscal year 2025-26, with an estimated outlay of around Rs20 trillion, is set to be presented in Parliament on June 2, ARY News reported, citing sources within the Ministry of Finance.

As the budget preparations have received a positive nod from the International Monetary Fund (IMF), which has expressed satisfaction with Pakistan’s budget priorities and proposals, the sources said.

They added that IMF is content with the Federal Board of Revenue’s (FBR) tax revenue targets, as well as the government’s strategies on subsidies, circular debt, and debt repayments.

The IMF’s approval strengthens Pakistan’s position as it navigates its 37-month Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) agreements with the IMF, which include disbursements of $1 billion and $1.4 billion, respectively, in May 2025.

Read More: Pakistan ‘eyes’ higher CGT on real estate in budget 2025-26

The Pakistan Economic Survey for 2024-25, which provides a comprehensive overview of the country’s economic performance, is expected to be released on June 1. The sources within the Ministry of Finance said that the budget preparations are being fast-tracked, with the Annual Plan Coordination Committee (APCC) scheduled to meet on May 26 to finalise the budget’s annual targets.

According to sources, ahead of the budget presentation, the National Economic Council (NEC) meeting is also expected to be held on May 31. The NEC will be chaired by Prime Minister Shehbaz Sharif and attended by the chief ministers of all four provinces.

Earlier, it was reported that the government is considering a substantial increase in the capital gains tax (CGT) on real estate transactions for the 2025-26 fiscal budget

According to sources, the proposed measure could raise the CGT rate on property sales by 20 percent, potentially escalating from the existing 15 percent to as much as 35 percent.

This adjustment aims to bring real estate taxation in line with corporate sector rates, addressing the sector’s untapped revenue potential.