THE government has postponed the announcement of the FY27 budget without offering any explanation for the decision. In the absence of an official announcement, speculation has been rife in the media about the reasons behind the delay. The most plausible explanation appears to be unresolved issues with the IMF, particularly with regard to fiscal space for relief and the transfer of some provincial resources to support federal spending. According to unnamed officials quoted in media reports, Pakistan and the IMF have yet to agree on revenue mobilisation steps and the expenditure cuts required under the programme. The government is reportedly seeking room for tax relief, higher development spending and increased defence allocations, while the........

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