Shehbaz Sharif Government to Present Second Budget on June 10; Size Estimated at Rs 17.8 Trillion

Islamabad: The Shehbaz Sharif-led government is set to present its second federal budget on June 10, with the total outlay projected at approximately Rs 17.8 trillion for the upcoming fiscal year. According to sources in the Ministry of Finance, this budget will be nearly Rs 900 billion less than the current fiscal year’s size, and a deficit of Rs 6,632 billion is expected.
In line with the International Monetary Fund’s (IMF) strict instructions, the upcoming budget will heavily emphasize austerity measures. The government has decided to implement a stringent cost-cutting campaign, with bans on the purchase of new vehicles by federal ministries and departments. Utility bills, including electricity and gas, for government departments will also be capped.
Furthermore, the IMF has demanded a halt to unnecessary supplementary grants. Only emergency supplementary funds will be permitted in case of natural disasters. No funds will be allocated for unannounced or non-budgeted projects.
A major portion of the budget — Rs 8,685 billion — is expected to go towards interest payments on debt. Of this, Rs 7,503 billion is earmarked for domestic debt servicing, and Rs 1,119 billion for foreign debt obligations.
Federal subsidies are projected at Rs 1,367 billion, while grants are estimated at Rs 1,619 billion. The federal government also anticipates receiving a surplus of Rs 1,220 billion from provinces.
For social welfare, the Benazir Income Support Programme (BISP) is likely to receive Rs 716 billion. The quarterly stipend under the program is expected to increase from Rs 13,500 to Rs 14,500 by January 2026.