ISLAMABAD: After offering crucial support for the federal budget, the Pakistan Peoples Party (PPP) is expected to officially join the federal government in July. Sources have indicated that the distribution of ministries is likely to be finalized next month.
This move follows weeks of tension between the PPP and the ruling Pakistan Muslim League (PML-N) over budget allocations and controversial tax measures, which had led to strong criticism from the PPP. The party had accused the government of sidelining Sindh and had threatened to withhold its support for the budget unless certain demands were met.
The deadlock eased when the government agreed to several key concessions, including a 20% increase in the Benazir Income Support Programme (BISP) budget and the rollback of proposed powers for the Federal Board of Revenue (FBR) to arrest taxpayers without warrants. In his address to the National Assembly, PPP Chairperson Bilawal Bhutto Zardari confirmed that the party would support the federal budget after the government accepted its demands to raise the BISP allocation to Rs716 billion, exempt income tax for salaried individuals earning up to Rs100,000, and reduce sales tax on solar panels.
The PPP’s support for the budget has paved the way for a broader power-sharing arrangement with the PML-N, with the establishment playing a role in brokering the deal. Sources revealed that the establishment assured PPP leadership that there would be no change in government and that political continuity was crucial for national stability. “The message was clear: the system must continue — and it will,” a source close to the negotiations stated.
In the next phase, the PPP is expected to become part of the Punjab government. Backchannel talks are already underway, but a final agreement has yet to be reached. Efforts are also in progress to bring other political forces into the fold as part of a broader consensus-building initiative.
