Differences persist between the government and the Pakistan Peoples Party (PPP) regarding the federal budget 2026-27, which are being discussed at high level.
A meeting was held between Deputy Prime Minister Ishaq Dar and PPP Chairman Bilawal Bhutto Zardari at the Parliament House on Tuesday, in which the party’s reservations regarding the budget were discussed in detail.
According to sources, the PPP has taken the position that the budget presented by the government is different from the initial draft that was shared with them earlier, which has created issues of trust.
The party leadership has made it clear that it will not fully participate in the budget discussion until its reservations are addressed and the promises made earlier are implemented.
Development expenditure, Public Sector Development Program (PSDP) and the overall fiscal strategy were also discussed in the meeting. The PPP demanded that the government focus on widening the tax net instead of increasing taxes.
According to sources, the International Monetary Fund (IMF) is also considering a demand for additional revenue measures worth about Rs430 billion, which could have an impact on both the federation and the provinces.
The PPP questioned what the practical means would be if the provinces were being asked to collect additional revenue, especially at a time when inflation is already adding to public pressure.
According to political observers, this situation is a major challenge for the coalition government as the PPP’s role in the budget approval and parliamentary process is considered important.
Sources say that further talks are expected between the two sides and efforts are being made to narrow the differences before the budget debate.