PPP, Govt continue budget negotiations amid unresolved concerns: sources
- By Jahangir Khan -
- Jun 03, 2026
ISLAMABAD: The federal government and the Pakistan Peoples Party (PPP) held an important meeting on the upcoming federal budget 2026-27, with both sides discussing key fiscal and development matters, ARY News reported citing sources.
According to sources, budget teams from the government and the PPP participated in the meeting, while Sindh Chief Minister also attended the talks.
PPP leaders Syed Naveed Qamar and Sherry Rehman were among those present during the discussions.
Sources said the government team briefed PPP representatives on the proposed federal budget 2026-27 as well as the expanded Public Sector Development Programme (PSDP) for the upcoming fiscal year.
During the meeting, both sides agreed to continue the consultation process on budget-related matters. However, sources indicated that the government was unable to fully address all of the PPP’s concerns.
According to PPP sources, reservations remain over certain PSDP projects, with discussions expected to continue in the coming days as both sides seek consensus ahead of the budget announcement.
The meeting comes amid ongoing consultations between coalition partners over budget 2026-27 priorities, development spending and resource allocation for the next fiscal year.
Budget 2026-27 likely to be put off to new date
Earlier, the government had decided against presenting the FY2026-27 federal budget on June 05, sources said.
The next fiscal year’s budget is likely to be rescheduled to June 10 or 12.
The government, however, doesn’t make the final decision with regard to the new date of announcement of the next year’s budget.
Meanwhile, the National Economic Council’s (NEC) session, which was scheduled on June 03 (Wednesday), has also been postponed.
“The change in budget schedule, has been made owing to the regional election in Gilgit-Baltistan”, according to sources. Moreover, further talks are likely with the IMF over the development budget and other budget-related issues, sources added.