The government on Monday appeared to secure crucial support from the Pakistan Peoples Party for the passage of the upcoming federal budget after both sides reached broad agreement on key proposals during a high-level meeting in Islamabad.
The meeting was jointly chaired by Asif Ali Zardari and Shehbaz Sharif at the presidency, commonly known as Aiwan-e-Sadr. According to sources familiar with the discussions, consensus was achieved on most budget-related recommendations put forward by the government and the PPP.
Officials said the understanding has significantly improved the prospects of smooth approval of the budget in Parliament, where the ruling coalition depends on allied parties for legislative support.
While agreement was reached on the majority of proposals, discussions on a limited number of technical issues will continue through designated committees. Both sides also reviewed measures aimed at expanding the tax base and managing fiscal pressures amid ongoing economic challenges.
The meeting was attended by PPP Chairman Bilawal Bhutto Zardari, Deputy Prime Minister and Foreign Minister Ishaq Dar, Interior Minister Mohsin Naqvi, Law Minister Azam Nazeer Tarar, Finance Minister Muhammad Aurangzeb, Adviser on Political Affairs Rana Sanaullah, Sindh Chief Minister Syed Murad Ali Shah, and Azad Jammu and Kashmir Prime Minister Raja Faisal Mumtaz Rathore, along with senior lawmakers.
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According to an official statement from the presidency, participants also discussed national security, internal and regional developments, economic conditions, law and order, and broader governance issues.
The meeting reviewed recent elections in Gilgit-Baltistan and the prevailing situation in Azad Jammu and Kashmir. The interior minister also briefed the president on his recent visit to Iran and ongoing regional diplomatic engagements.
While reviewing budget proposals and public relief measures, President Zardari emphasised that the upcoming federal budget must prioritise public welfare, protect provincial rights, and support long-term economic stability.
He stressed the need to align growth targets with policies that directly benefit the public.
Meanwhile, the federal budget for fiscal year 2026–27 has been delayed for a second time due to unresolved issues over budgetary figures and lack of consensus with provinces on a proposed Rs1.7 trillion contribution for defence, security, and social sector spending.
Officials are also continuing negotiations with the International Monetary Fund on key taxation, non-taxation, and expenditure measures.
Sources said the decision to postpone the budget was taken during Monday’s meeting.
As a result, the National Economic Council meeting scheduled for Tuesday is now expected to be held on June 10 to approve the development programme and macroeconomic framework for the next fiscal year.
The Economic Survey for 2025–26 is now likely to be released on June 11, while the federal budget is expected to be presented in Parliament on June 12. This marks the second delay after the budget was initially scheduled for June 5 and later moved to June 10.
