ISLAMABAD – A key meeting of National Economic Council, expected to finalise crucial budget decisions under chairmanship of Prime Minister Shehbaz Sharif, has been unexpectedly postponed. The delay created fresh uncertainty around the federal budget timeline, with officials now indicating that the next fiscal plan may be presented in early June, possibly on June 8 or June 12.
As approval of massive development outlay remains pending, the entire budget process has entered a waiting phase, leaving key financial decisions for the coming year temporarily on hold.
The delay also triggered effects across the government’s entire budget planning cycle, raising questions over when federal budget for the next fiscal year will finally be presented in the National Assembly. According to sources, the presentation may now be pushed to June 8 or June 12, although no official notification has been issued by parliamentary authorities so far.
NEC was expected to give final approval to massive Rs4,715 billion national development budget, a key step before the federal budget announcement. Within this framework, the federal Public Sector Development Programme (PSDP) was also expected to see a significant boost—rising from Rs1,126 billion to Rs1,326 billion, marking an increase of Rs200 billion in development spending.
However, with the NEC meeting now postponed, the entire budget approval chain has been disrupted, leaving the schedule of the federal budget session hanging in uncertainty.
Budget documents reveal substantial proposed allocations across key government divisions. A total of Rs72.7 billion is earmarked for the Cabinet Division and Establishment Division, with a heavy focus on development-linked spending.
A major portion, which is around Rs70 billion, is expected to be utilized under the Sustainable Development Goals (SDGs) programme, largely driven by development schemes associated with parliamentarians. In addition, the Cabinet Division is set to receive Rs2 billion for development initiatives.
With NEC meeting postponed and no official summons yet issued for the budget session, uncertainty continues to grow over the government’s fiscal roadmap.
The delay added fresh suspense to an already closely watched budget season, as key decisions involving trillions of rupees in development spending remain pending.
