Pakistan has delayed its federal budget announcement due to ongoing disputes regarding defence spending, provincial funding, and fiscal targets set by the International Monetary Fund (IMF). Originally expected around June 5, the budget is now anticipated next week as the Shehbaz Sharif government grapples with a demand from the General Headquarters (GHQ) for a 20-25% increase in defence expenditure. This request has sparked tensions between the federal government, provinces, and the IMF, which opposes such a steep rise in military spending. The finance ministry is exploring ways to generate an additional Rs 1.7 trillion from provincial sources to accommodate these demands, but faces resistance from the Pakistan People’s Party regarding changes to the National Finance Commission Award. The National Economic Council meeting has also been postponed due to unresolved issues over public sector funding. The situation underscores the military's dominance in fiscal decision-making, complicating the government's efforts to balance IMF conditions, coalition pressures, and public welfare commitments.