Deadlock persists between PPP and Govt over budget 

With the federal budget for the financial year 2026-27 expected to be tabled on June 10, two major ruling partners, the PML-N and the PPP, continued their consultations on the proposed fiscal measures. 

A government delegation led by Deputy Prime Minister Ishaq Dar met with PPP at the Foreign Ministry. Naveed Qamar and Sherry Rehman are present in the Pakistan Peoples Party delegation. The PPP has reservations regarding additional taxes and subsidies from the provinces and the development budget, sources said. Finance Ministry officials are also part of the government delegation. 

Sources said deadlock on budget continued as the emergency meeting between the government delegation and the PPP ended immediately. The efforts are being made by both sides to end the deadlock. 

Sources said the next meeting between the PPP and PML-N would be attended by party chairman, Bilawal Bhutto-Zardari, who will be back from his election campaign in Gilgit-Baltistan before the June 7 polls.

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. A PPP leader also said they were trying to reach an agreement with the government on fiscal measures in light of the new IMF demands, adding that they were unhappy with the budget in its current form.

Another source said the consultations were also delayed because the IMF approval came “too late”. The PPP leaders said 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.