ISLAMABAD: With the Federal Budget 2026-27 expected to be presented on June 10, the federal government and the Pakistan Peoples Party (PPP) have held extensive consultations aimed at finalizing development priorities, public welfare initiatives and economic growth measures for the upcoming fiscal year.
The high-level meeting brought together Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kayani, Special Assistant to the Prime Minister Tariq Bajwa, the Finance Secretary and the Chairman of the Federal Board of Revenue (FBR). The PPP delegation included Sindh Chief Minister Murad Ali Shah, Syed Naveed Qamar, Sherry Rehman and Saleem Mandviwalla.
According to participants, discussions focused on development funding, sustainable economic policies and strategies to ensure inclusive growth. The federal Public Sector Development Programme (PSDP), public welfare projects and proposed restructuring measures for the Benazir Income Support Programme (BISP) were also reviewed during the meeting.
Sources said the consultations specifically addressed reservations raised by the PPP regarding the upcoming budget. The federal government reportedly agreed to consider incorporating development projects proposed by the party into the budget framework, signaling efforts to maintain coalition unity ahead of the budget presentation.
The two sides also reached an understanding on presenting the Federal Budget 2026-27 on June 10, following the government’s decision to postpone the original budget date of June 5. Officials said the additional time would allow broader consultations and consensus-building among coalition partners.
Separately, Minister for Parliamentary Affairs Tariq Fazal Chaudhry emphasized that consultations with coalition allies remain an essential part of the budget-making process. He noted that both the PPP and MQM-P are significant partners in the ruling coalition and that their practical recommendations would be reflected in the final budget proposals.
The minister said the government’s primary objective is to provide maximum relief to citizens while minimizing the financial burden on the public. He added that lawmakers must approve the budget before June 30 to ensure uninterrupted government expenditures from the national treasury.
Addressing provincial finances, Tariq Fazal Chaudhry reiterated that the federal government has no constitutional authority to withhold funds from provinces and stated that Khyber Pakhtunkhwa has received its constitutionally mandated share.
The latest round of consultations highlights the government’s efforts to secure broad political backing for its economic agenda at a time when fiscal management, development spending and public relief measures remain central challenges for the country’s economy.
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