Government to Present Budget on June 10 Amid Ongoing Talks with PPP

Pakistan News June 3, 2026

1 week ago|1 week ago|

The federal government has decided to present the upcoming fiscal budget on June 10, even as differences with its key ally, the Pakistan Peoples Party (PPP), over budget proposals reportedly persist.

Following a meeting with the PPP, Finance Minister Senator Muhammad Aurangzeb described the discussions as “very positive” and affirmed that a “purposeful budget” would be presented. He added that more meetings are scheduled for the end of this week, emphasizing the need to move forward with the consensus of the IMF, allies, and all stakeholders.

However, sources indicate that no significant progress has been made in the negotiations so far. The matter is now expected to be discussed at the senior leadership level, with Deputy Prime Minister Ishaq Dar scheduled to meet with PPP leaders Asif Ali Zardari and Bilawal Bhutto in the next two days.

The government remains firm on the June 10 budget session date, regardless of the outcome of the talks. The recent meeting was chaired by Deputy PM Dar and attended by Finance Minister Aurangzeb and Minister of State for Finance Bilal Azhar Kayani. The PPP delegation included Naveed Qamar and Sherry Rehman, with Sindh Chief Minister Syed Murad Ali Shah joining via video link.

The Finance Minister stated that the government’s priority is to improve tax collection through better enforcement and by broadening the tax net, rather than imposing new taxes. One participant in the talks noted that such pre-budget meetings on development and taxation are routine, while another described the initial meetings as neither a success nor a failure.

Latest Updates

Updated: 2:55 PM PKT — June 4, 2026

In the lead-up to the federal budget presentation, Prime Minister Shehbaz Sharif has convened a meeting of the National Economic Council (NEC) for June 8. The council, which includes federal ministers and the chief executives of all provinces and regions, is set to approve the development budget for the fiscal year 2026-27 and review the country’s economic priorities.

Following the NEC meeting, the Economic Survey of Pakistan is expected to be unveiled on June 9. The survey will provide a detailed overview of the nation’s economic performance during the current fiscal year, setting the stage for the federal budget announcement scheduled for June 10.

Updated: 2:23 PM PKT — June 4, 2026

The federal budget for the upcoming fiscal year is now scheduled to be presented on Wednesday, June 10, at 5 PM, according to government sources. Summaries for the National Assembly and Senate sessions have reportedly been dispatched for the budget presentation.

Earlier reports had indicated a June 5 date, which was subsequently postponed, along with a National Economic Council meeting planned for June 3. This year’s budget proposal includes a national development budget of over Rs 4 trillion.

Updated: 8:45 AM PKT — June 4, 2026

The federal government has postponed the announcement of the upcoming fiscal budget, which was previously scheduled for June 10. While no official reason was provided for the delay, reports suggest it stems from unresolved issues with both the International Monetary Fund (IMF) and key coalition partner, the Pakistan Peoples Party (PPP).

Discussions with the IMF are reportedly stalled over revenue targets, expenditure cuts, and the scope of economic relief, as the government seeks fiscal space for development and defence spending against the Fund’s push for continued discipline. Simultaneously, differences with the PPP persist over federal development allocations for projects in Sindh and alleged attempts to reduce the provinces’ share of resources from the national divisible tax pool.

Updated: 8:14 AM PKT — June 4, 2026

Further details on the federal government’s budget challenges have emerged, with Khyber Pakhtunkhwa’s Adviser on Finance, Muzammil Aslam, claiming the Centre is grappling with a fiscal hole of around Rs 1.7 trillion. Aslam asserted that the federal government wants provinces to shoulder a greater financial burden, alleging it had asked for an additional Rs 430 billion in revenue from provincial taxes on property and agriculture.

Aslam attributed the budget formulation difficulties to the government’s ‘over-commitments’ to the IMF on revenue while trying to satisfy coalition partners. He noted that the recent cancellation of a National Economic Council meeting had created market uncertainty and described the PPP leadership’s lengthy meetings at the finance ministry as a ‘matter of grave concern’.

Updated: 6:42 AM PKT — June 4, 2026

The presentation of the federal budget for the upcoming fiscal year, previously scheduled for June 5, has been postponed, with new tentative dates set for June 10 or 12. No official reason was provided for the delay, which has raised concerns among parliamentarians about having insufficient time to scrutinize the budget documents, fueling impressions they are being used as a ‘rubber stamp’.

Media reports attribute the postponement to several factors, including unresolved differences with the International Monetary Fund (IMF) over a challenging revenue collection target of Rs 15,264 billion. Disagreements with coalition partners, notably the Pakistan Peoples Party (PPP), also persist, particularly over the proposed devolution of the Benazir Income Support Programme (BISP) to the provinces.

Updated: 5:41 AM PKT — June 4, 2026

The delay in the federal budget presentation, now scheduled for June 10, is reportedly linked to a significant Rs 3 trillion shortfall in funds allocated for the Public Sector Development Programme (PSDP), a concern raised by Planning Minister Ahsan Iqbal. Other potential reasons for the postponement include the Federal Board of Revenue’s (FBR) apprehension over ambitious revenue targets.

The delay comes amid strict conditions from the International Monetary Fund (IMF), which recently concluded a visit focused on the budget strategy. Failure to adhere to agreed-upon reforms, particularly regarding revenue generation through audits and enhanced GST collection, could jeopardise the next IMF tranche and critical rollovers from friendly nations.

Updated: 12:38 AM PKT — June 4, 2026

Consultations between the ruling PML-N and its ally, the PPP, are ongoing ahead of the federal budget for the fiscal year 2026-27, which both parties have agreed to recommend be presented on June 10. PPP Chairman Bilawal Bhutto-Zardari is expected to join the next round of talks later this week.

The PPP has expressed its opposition to new taxes, urging the government to broaden the tax base rather than further burdening existing taxpayers. In response, Finance Minister Muhammad Aurangzeb stated the government would focus on improving enforcement to expand the tax net. Discussions have centered on expenditure priorities, the Public Sector Development Programme (PSDP), and fiscal sustainability.

Updated: 10:05 PM PKT — June 3, 2026

The federal government and its key coalition partner, the Pakistan Peoples Party (PPP), have agreed to recommend June 10 as the date for the presentation of the upcoming federal budget.

The consensus was reached during a pre-budget consultation meeting in Islamabad attended by Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, and senior PPP leaders including Murad Ali Shah and Sherry Rehman. Discussions focused on priorities for current and development expenditures, the Public Sector Development Programme (PSDP), and broader economic objectives for the next fiscal year. The recommendation will now be forwarded to Prime Minister Shehbaz Sharif for final approval.