President Zardari urges welfare, provincial rights focus in upcoming federal budget

ISLAMABAD: President Asif Ali Zardari on Monday called for the 2026-27 federal budget to give priority to public welfare, provincial rights and economic stability during a meeting with Prime Minister Shehbaz Sharif, according to a statement issued by the Presidency.

The meeting took place at the President’s House as part of broader pre-budget consultations among major coalition allies at the Centre, ahead of the government’s plan to present the federal budget for FY2026-27 on June 10. The Presidency said the two leaders discussed budget proposals and public relief measures, along with a range of national issues.

According to the official handout, the president stressed that the budget should place public welfare, provincial rights and economic stability at the centre of fiscal planning.

"While discussing budget proposals and public relief, the president stressed prioritising public welfare, provincial rights and economic stability in the federal budget"

The statement added that President Zardari also directed that efforts be made to align the growth rate with public welfare schemes in the upcoming budget.

Security, economy and regional situation discussed

The Presidency said the meeting also covered national security, the internal situation and regional developments. Interior Minister Mohsin Naqvi briefed the president on his recent visit to Iran and on regional diplomatic engagements.

Besides the budget, the discussion included the economy, the recent Gilgit-Baltistan elections, the situation in Azad Jammu and Kashmir, law and order, and other matters of national importance, the official statement said.

Deputy Prime Minister and Foreign Minister Ishaq Dar, Law Minister Azam Nazeer Tarar, Finance Minister Muhammad Aurangzeb and Prime Minister’s Adviser on Political Affairs Rana Sanaullah attended the meeting. Also present were PPP Chairman Bilawal Bhutto Zardari, Sindh Chief Minister Syed Murad Ali Shah, Azad Jammu and Kashmir Prime Minister Raja Faisal Rathore, MNA Raja Pervaiz Ashraf, Senator Sherry Rehman, MNA Syed Naveed Qamar, Senator Saleem Mandviwalla and Senator Ahad Cheema.

PPP had raised tax concerns in earlier consultation

A day earlier, a PPP delegation led by Bilawal Bhutto Zardari had conveyed reservations about taxation during a pre-budget meeting with Ishaq Dar. During that meeting, Dar assured the party that its proposals would be reflected in the budget.

The International Monetary Fund has asked the federal government to introduce at least Rs430 billion in additional budgetary measures in the coming budget, while the four provinces are also expected to generate a nearly equal amount of Rs430 billion.

In that context, the PPP asked Dar about ways for the provinces to raise tax revenues. Party leaders also opposed the imposition of new taxes and expressed the hope that the government would shift its taxation approach to provide relief to people affected by inflation. They said the government should expand the tax base instead of putting further burden on those already paying taxes.