ISLAMABAD: The Pakistan Peoples Party has signaled its backing to the federal government led by PML-N for the passage of the upcoming budget, according to sources following a high-level meeting between the two ruling alliances in Islamabad on Monday.
The gathering involved a discussion between PPP leadership, headed by President Asif Ali Zardari, and Prime Minister Shehbaz Sharif, focusing on key fiscal and political issues. Senior officials from the Finance Ministry, along with Deputy Prime Minister and Foreign Minister Ishaq Dar, also participated in the talks.
Party chairman Bilawal Bhutto-Zardari and members of the PPP budget committee were present alongside President Zardari. Insiders revealed that both sides reached a broad consensus on most of the budget proposals. However, technical committees will continue working on remaining details to finalize the overall fiscal framework.
The federal government had previously announced that the FY 2026–27 budget presentation, scheduled for June 5, would be postponed to June 10. This postponement was due to objections from coalition allies over certain proposed amendments, with the government aiming to complete crucial legislation ahead of the budget session.
Sources indicated that the contentious laws have significant implications for the upcoming budget, which faced reservations from the PPP, a key coalition partner. To break the deadlock, senior political figures have been tasked with engaging the PPP leadership to secure their support.
Additionally, the Muttahida Qaumi Movement-Pakistan (MQM-P) has also conditioned its backing on specific issues, with leader Farooq Sattar linking approval to the reappointment of Kamran Tessori as Sindh governor.
Finance Minister Muhammad Aurangzeb earlier emphasized ongoing efforts to build consensus among coalition partners, describing discussions as “positive.” He noted that the budget process is being coordinated with the IMF, allied parties, and other stakeholders, with an emphasis on reforming tax administration and broadening the tax base.
He also reassured that no new taxes are being planned, as the government strives to balance fiscal discipline with political consensus and economic stability.
Potential Change in Budget Presentation Date
Amid ongoing negotiations, the government is contemplating a shift in the budget presentation date from June 10 to June 12. Discussions are currently underway, with a final decision expected within the next one or two days.
Federal Planning Minister Ahsan Iqbal noted that several budget-related issues remain unresolved as talks continue, especially considering the upcoming Islamic month of Muharram. He pointed out that the process is ongoing, and adjustments may be made before the final presentation.
Iqbal added that it remains uncertain whether the schedule will be altered and stated that no definitive decision has yet been made regarding the revised date.
