FY 2026-27: PPP, govt discuss budget process ahead of presentation expected on June 10

ISLAMABAD: The federal government and the Pakistan Peoples Party (PPP) held detailed consultations on the upcoming Federal Budget 2026-27, with both sides discussing development priorities, public welfare measures and economic growth strategies.

A meeting between Deputy Prime Minister and Foreign Minister Ishaq Dar and senior PPP leaders was attended by 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.

Participants exchanged views on development funding, sustainable economic policies and priorities for inclusive growth. The two sides also discussed the federal Public Sector Development Programme (PSDP), public welfare initiatives and the restructuring of the Benazir Income Support Programme (BISP).

According to sources, the meeting reviewed the PPP’s reservations regarding the upcoming budget. The federal government agreed to consider and include development projects proposed by the PPP in the budget framework.

The participants also agreed on a proposal to present the Federal Budget 2026-27 on June 10.

Separately, Minister for Parliamentary Affairs Tariq Fazal Chaudhry said the government considers consultation for budget process with coalition partners a key responsibility. He noted that the PPP and MQM-P are major coalition partners and their practical recommendations would be incorporated into the budget.

He said the government’s objective is to provide maximum relief to the public while placing the least possible financial burden on citizens. He added that the budget date was revised from June 5 to June 10 to allow more time for consultations and consensus-building.

Tariq Fazal Chaudhry stressed that the budget must be passed before June 30, as government expenditures from the national treasury cannot continue without parliamentary approval.

He also reiterated that the federal government has no constitutional authority to withhold funds from provinces and that Khyber Pakhtunkhwa has received its due share under the Constitution.

The consultations come as the government intensifies engagement with coalition partners ahead of the budget, seeking broad political support for its economic and development agenda for the next fiscal year.