PPP 'agrees' to support budget after striking agreement with govt

ISLAMABAD: The Pakistan Muslim League-Nawaz (PML-N) led federal government has ‘addressed’ the Pakistan Peoples Party (PPP)’s concerns over the budget 2025-26, paving the way for a finalized agreement, ARY News reported citing sources

The government has agreed to restore a Rs 4.6 billion grant for universities, a key demand from PPP, the sources added.

This was decided after the PPP threatened not to its vote on the budget, prompting the government to negotiate the deal.

The development came after a meeting between President Asif Ali Zardari and Prime Minister Shehbaz Sharif.

Additionally, the sources added that the government has consented to reduce the proposed 18 percent tax on solar panels to 10 percent.

The federal government and the PPP also agreed transferring federal schemes in Sindh to the provincial government’s control.

“The government has assured PPP that the Sukkur-Hyderabad Motorway project will be financed through a loan from the Islamic Development Bank, with work set to begin soon and the project targeted for completion within two to three years.

Notably, Pakistan Tehreek-e-Insaf (PTI) had formally urged PPP not to participate in the budget voting to block the approval of the 2025-26 federal budget.

Earlier in the day, Prime Minister Shehbaz Sharif called on President Asif Ali Zardari in Islamabad on Tuesday as they discussed the prevailing political and economic situation in the country and the budget 2025-26.

Read More: Budget 2025-26: Govt ‘seeks’ PPP support to pass finance bill

According to a press statement issued here, PM Shehbaz briefed President Zardari on his recent official visit to the United Arab Emirates as well as key features of the federal budget.

President Asif Ali Zardari emphasised that the federal budget should prioritize the welfare and uplift of the common man, particularly workers and low-income groups.

He said that the salaried class, pensioners, labourers, and underprivileged segments of society are facing serious challenges, and effective measures must be taken to alleviate their burden.

Deputy Prime Minister Ishaq Dar, federal ministers Ahsan Iqbal and Azam Nazeer Tarar as well as Senator Saleem Manviwalla were also present during the meeting.