BUDGET 2026-27: Budget timing in doubt after NEC meeting put off again

The meeting of the National Economic Council (NEC), officially called on Monday for June 8, was postponed for the third time at the last moment amid continuing negotiations over the freezing of provincial shares in the federal divisible pool under the National Finance Commission (NFC) award. As a consequence, the federal budget 2026-27 may not be presented in parliament on June 10 as announced last week by the Ministry of Finance. The finance ministry’s official spokesperson did not respond to a request for comment on the revised plan for the release of the Economic Survey of Pakistan and the budget schedule. Muzzammil Aslam, adviser on finance to the Khyber Pakht­unkhwa chief minister, confirmed that the Centre had told provinces that their financial shares under the NFC for the current year would not be increased next year and that any amount above the current year’s share would have to be returned to the Centre. Aslam said the provinces had protested the demand, as it would push provincial budgets into deficit and make it difficult for them to run their governments. He said the federal government team suggested that provinces could freeze salaries and limit development schemes. The Centre’s additional fiscal demand is over and above the Rs1.95tr cash surplus that provinces have already committed and signed under the national fiscal pact pushed by the IMF. Speaking to journalists after a meeting with a fed