• PPP ‘unhappy’ with govt on tax measures
• Dar says both sides agreed on June 10 date for announcing budget following consultations
ISLAMABAD: With the federal budget for the financial year 2026-27 expected to be tabled next week, two major ruling partners, the PML-N and the PPP, continued their consultations on the proposed fiscal measures, with another round of the pre-budget meetings scheduled for later this week.
Deputy Prime Minister Ishaq Dar announced on Wednesday that it would be tabled on June 10.
Sources said the next meeting between the PPP and PML-N would be attended by PPP Chairman Bilawal Bhutto-Zardari, who will be back from his election campaign in Gilgit-Baltistan by then.
PPP sources said these were routine pre-budget meetings to discuss taxation and other measures and multiple rounds could take place before the budget session expected on June 10.
A PPP leader said they were trying to reach an agreement with the government on the fiscal measure in light of the new IMF demands, adding that they were unhappy with the budget in its current form. The PPP source said the government wanted to tax the same classes instead of expanding the tax base.
Another source said the IMF conditions that the government has agreed to are one of the sticking points, but technical consultations were underway. About their meeting, they said the consultations were also delayed because the IMF approval came “too late”.
According to the insider, this is the first time that the Fund had dictated macroeconomic conditions, such as primary surplus and revenue targets, for the federal budget. The IMF has also set targets for the provinces in an unprecedented move, the sources added. The PPP leaders told Dawn they opposed new taxes and hoped the government would change its approach to taxation to provide relief to the inflation-hit masses.
Sources said the PPP delegation emphasised that the government should prefer a broader tax base instead of exerting pressure on the same class which was already paying taxes. On this, Finance Minister Muhammad Aurangzeb said the government would try its best to improve enforcement in the broadening of the tax net.
A statement issued by his office said that Deputy PM Ishaq Dar, along with Finance Minister Muhammad Aurangzeb, held a meeting with PPP leaders as part of routine pre-budget consultations. The discussions focused on current expenditure and development spending priorities, including the PSDP, as well as broader economic priorities such as fiscal sustainability, public welfare, development initiatives, and inclusive growth, said the official handout.
“It was unanimously agreed to recommend to Prime Minister Muhammad Shehbaz Sharif @CMShehbaz that the Budget for fiscal year 2026–2027 be announced on Wednesday, 10 June 2026.”
The meeting was attended by Sindh CM Syed Murad Ali Shah, MNA Syed Naveed Qamar, Senator Sherry Rehman, Senator Saleem Mandviwalla, Sindh Irrigation Minister Jam Khan Shoro, Minister of State for Finance and Railways Bilal Azhar Kayani, Special Assistant to the PM Tariq Bajwa, Federal Finance Secretary Imdadullah Bosal, FBR Chairman Rashid Mahmood Langrial, and other senior officials from the concerned ministries and departments.
Published in Dawn, June 4th, 2026
