Dar assures PPP budget proposals to be included amid ‘IMF-driven fiscal talks’

-Pre-budget meeting held between PPP delegation and Ishaq Dar in Islamabad

Bilawal-led team raises concerns over tax measures and revenue targets

PP urges shift from taxing existing classes to broadening tax base as coalition partners hold second round of budget consultations ahead of June 10

Third and final round of talks expected between PML-N and PPP on Monday

 ISLAMABAD: Deputy Prime Minister and Foreign Minister Ishaq Dar on Sunday assured the Pakistan People’s Party (PPP) that its proposals would be incorporated in the upcoming federal budget during a pre-budget consultation meeting held with a PPP delegation led by Chairman Bilawal Bhutto-Zardari.

The meeting was held at Zardari House in Islamabad, where Bilawal Bhutto-Zardari led a delegation comprising Sherry Rehman, Naveed Qamar, Murad Ali Shah and Jam Khan Shoro. According to an official PPP statement, matters related to the federal budget were discussed in detail.

The discussion covered overall fiscal planning, expenditure priorities, development spending under the Public Sector Development Programme (PSDP), as well as broader economic objectives including fiscal sustainability, public welfare, development initiatives and inclusive growth.

With the federal budget for FY2026-27 scheduled to be announced on June 10 (Wednesday), the meeting marked the second round of pre-budget consultations between the two key coalition partners, the PML-N and PPP, while a third and final round is expected on Monday.

According to sources, Ishaq Dar assured the PPP delegation that their proposals would be reflected in the final budgetary framework.

Sources said the PPP raised concerns in continuation of earlier discussions, particularly regarding revenue enhancement targets assigned to provinces under International Monetary Fund (IMF) requirements.

The IMF has reportedly asked the federal government to introduce around Rs430 billion in additional revenue measures in the upcoming budget, alongside a nearly equivalent Rs430 billion target expected to be generated by the provinces collectively.

During Sunday’s meeting, PPP leaders sought clarity on how provinces could realistically increase tax revenues under the revised framework, the sources added.

‘Negotiations To Reach Consensus On Fiscal Measures’

Separately, a PPP leader said the party was engaged in negotiations with the PML-N to reach consensus on fiscal measures in light of IMF conditions, adding that the party was “unhappy with the budget in its current form”.

“The government appears to be relying on taxing the same segments instead of broadening the tax base,” the PPP leader remarked.

An insider noted that the IMF had set macroeconomic benchmarks, including primary surplus and revenue targets, for the federal budget, while also assigning provincial-level fiscal targets — described as an unusual development.

“The IMF has also set targets for the provinces in an unprecedented move,” the source said.

According to sources, PPP representatives opposed the imposition of additional taxes and urged the government to shift focus towards broadening the tax base rather than increasing pressure on existing taxpayers, particularly amid inflationary pressures.

“The discussion largely revolved around revenue generation and expenditure management,” a source added.