Budget due on June 2; PSDP faces 16pc cut

The federal government will present the next fiscal year’s budget on June 2, with a 16 per cent lower development allocation of Rs921 billion, resulting in the likely closure of about 200 ongoing development projects. This was announced at a press conference by Planning Minister Ahsan Iqbal, who disclosed that an indicative budget ceiling (IBC) of Rs921bn for the next year provided by the Ministry of Finance was over three times lower than Rs2.9 trillion demanded by the Planning Commission based on requirements of various ministries for development projects. The figure is also around 16pc lower than the current year’s revised allocation of Rs1.1tr, slashed on the instructions of the International Monetary Fund (IMF) from Rs1.4tr approved by the parliament as part of the federal budget 2024-25.