Pakistan moves closer to federal budget deal after Shehbaz-Bilawal meeting

Pakistan’s ruling coalition has edged closer to a consensus on the federal budget for fiscal year 2026-27 following a key meeting between Prime Minister Shehbaz Sharif and Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari on Monday.

The PPP has indicated its readiness to support the budget after the government accepted several of its proposals, while the federal budget presentation has once again been postponed. A revised date is expected to be announced in due course.

Initially planned for June 5, the budget was later shifted to June 10 before being delayed again amid ongoing political consultations within the coalition.

The meeting at the Prime Minister’s House was attended by President Asif Ali Zardari, Finance Minister Muhammad Aurangzeb, Deputy Prime Minister Ishaq Dar, and senior PPP figures including Naveed Qamar and Sherry Rehman, alongside members of the joint budget committee from both PPP and PML-N.

During the session, Prime Minister Shehbaz Sharif also congratulated Bilawal Bhutto Zardari on the PPP’s recent electoral success in Gilgit-Baltistan.

Sources said the government incorporated several proposals submitted by the PPP, strengthening cooperation between coalition partners on the upcoming budget framework.

The federal budget has been delayed twice, with political negotiations and unresolved matters with the International Monetary Fund (IMF) cited as key factors behind the postponements.

The National Economic Council meeting, linked to budget approval, has also been deferred multiple times. Key disagreements, including IMF-related approval on proposed tax relief for salaried individuals, continue to affect the finalisation process.

Earlier, President Asif Ali Zardari and Prime Minister Shehbaz Sharif met at Aiwan-e-Sadr to review national security, economic conditions, budget planning, and regional affairs.

President Zardari emphasised that the upcoming budget must focus on public welfare, provincial equity, and economic stability. Interior Minister Mohsin Naqvi also briefed the president on his recent foreign engagements, including a visit to Iran.

In a separate discussion, Prime Minister Shehbaz Sharif and PPP Chairman Bilawal Bhutto Zardari reviewed the political and administrative situation in Pakistan-administered Kashmir amid rising tensions.

Bilawal highlighted public concerns and administrative challenges in the region, while the federal government reiterated its commitment to maintaining peace, stability, and the rule of law.

Bilawal also stressed that political issues should be resolved through dialogue and parliamentary mechanisms.