Federal Budget 2025-26 Likely to Be Delayed Again Due to Eid Holidays

The Federal Budget 2025-26 may be postponed once more, as government officials weigh the impact of Eid ul Adha holidays on the already adjusted budget timeline. Initially scheduled for June 2, the budget presentation was delayed to June 10. Now, there are growing indications it could be further pushed to June 12.

This delay is largely due to the Eid ul Adha holidays, which are expected to fall on June 7 and 8 (Saturday and Sunday). Since June 9 marks the third day of Eid, typically observed as a public holiday, it presents a significant challenge for the government’s economic schedule.

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Key Meetings Clash with Eid Holidays

The federal government’s economic calendar includes two crucial events on June 9:

• National Economic Council (NEC) meeting
• Release of the Economic Survey 2025

However, conducting both on the same day is reportedly unfeasible, according to finance ministry sources. The NEC meeting alone requires a full day and is critical in finalizing development allocations. Attendees include:

• Chief ministers of all four provinces
• Prime Minister of Azad Jammu and Kashmir
• Representatives from Gilgit-Baltistan

The NEC is responsible for shaping the direction of both federal and provincial development programs for the upcoming fiscal year. Due to its extensive nature, it is unlikely that the Economic Survey 2025—an annual report detailing the nation’s economic health—can be released on the same day.

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Possible New Budget Date: June 12

Traditionally, a two-day gap is observed between the NEC meeting and the formal budget presentation in Parliament. Based on this practice, officials now suggest that the Federal Budget 2025-26 may be presented on June 12, giving sufficient time for procedural and preparatory work.

This marks the second time the federal budget has faced delays. The first postponement—from June 2 to June 10—was attributed to ongoing discussions with the International Monetary Fund (IMF) regarding fiscal targets. Despite resumed talks last week, no breakthrough has been reported so far.

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Tax Relief Hinted for Salaried Class

In a somewhat positive note amidst these delays, Federal Finance Minister Muhammad Aurangzeb recently stated that the upcoming budget will aim to offer tax relief to the salaried class. Speaking at an event in Islamabad, he acknowledged the burden of income tax deductions at the source and emphasized the need for strategic financial reforms.

“We are actively working to reduce the tax burden on salaried individuals. This budget must reflect more than just numbers—it needs a clear direction,” said the finance minister.

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Conclusion: A Delicate Balance Between Holidays and Fiscal Planning

As the Federal Budget 2025-26 hangs in the balance, the government finds itself juggling between national holidays, critical economic planning, and international financial negotiations. While the possible new date of June 12 provides some breathing room, the real challenge lies in aligning strategic goals with realistic timelines.