Government, PPP continue budget talks ahead of FY2026-27 announcement

The federal government has intensified efforts to address concerns raised by its key coalition partner, the Pakistan Peoples Party (PPP), as consultations continue over the upcoming federal budget for fiscal year 2026-27.

ISLAMABAD: The federal government has intensified efforts to address concerns raised by its key coalition partner, the Pakistan Peoples Party (PPP), as consultations continue over the upcoming federal budget for fiscal year 2026-27.

According to sources familiar with the discussions, a series of meetings is underway between delegations of the ruling Pakistan Muslim League-Nawaz (PML-N) and the PPP to build consensus on major budgetary proposals before the budget is presented.

The government’s negotiating team is being led by Deputy Prime Minister and Foreign Minister Ishaq Dar, while senior PPP leaders Naveed Qamar and Sherry Rehman are representing their party in the talks. Officials from the Ministry of Finance are also participating in the consultations to provide technical input on fiscal and economic matters.

Sources said the PPP has expressed reservations regarding several aspects of the proposed budget, particularly the possibility of imposing additional taxes on the public and businesses. The party is also seeking clarity on the government’s plans regarding subsidies and financial support measures aimed at protecting vulnerable segments of society from the impact of inflation.

Another key issue under discussion is the allocation of development funds and the distribution of resources among provinces. PPP representatives are reportedly emphasizing the need to safeguard provincial interests and ensure that development spending remains equitable and aligned with regional priorities.

The consultations come at a crucial time as the government finalizes budget proposals amid economic challenges, revenue targets, and commitments linked to fiscal reforms. Coalition leaders are aiming to reach a mutually acceptable framework that can secure political support for the budget while addressing concerns about economic growth, public welfare, and provincial development.