PPP likely to back budget as govt talks reach broad understanding: sources

ISLAMABAD: Sources said the Pakistan Peoples Party (PPP) was likely to support the federal budget after indications emerged that the deadlock between the government and the party was nearing an end, sources told ARY News.

A meeting between the government and PPP leadership was held at the Presidency, during which PPP’s concerns over the budget were reviewed.

Sources said PPP Chairman Bilawal Bhutto Zardari, Naveed Qamar, and Sherry Rehman attended the meeting.

The government team briefed the PPP leadership on key budget components, including the Public Sector Development Programme (PSDP), taxation measures, and overall budget figures.

Sources added that the government had also shared the budget draft with the PPP during the consultations.

The development came after the PPP had recently sought time from the government to review its budget proposals, while the government had assured its inclusion in the budget-making process.

Sources said the PPP’s economic team had already begun working on budget proposals after raising concerns over the initial draft.

Both sides had earlier exchanged concerns over the budget, which the government had assured would be addressed through negotiations.

PPP sought 50pc salary, pension hike in Budget 2026-27

Earlier, sources told ARY News that the Pakistan Peoples Party (PPP) had put forward key demands ahead of the federal budget 2026-27, including a substantial increase in salaries and pensions for government employees.

Sources said the PPP had proposed a 50 per cent increase in salaries and pensions for government employees, arguing that a significant adjustment was necessary in view of prevailing inflation.

The party had also recommended raising the minimum monthly wage to Rs60,000.

According to PPP sources, the government should ensure that salaries and pensions are increased in proportion to the cost of living and inflationary pressures faced by citizens.

However, sources indicated that the government was reluctant to accept the PPP’s demands regarding salaries and pensions. The PPP had also opposed the imposition of new taxes and levies, maintaining that the government was already collecting substantial revenues through existing taxation measures.

Party sources further suggested that the government should focus on identifying new avenues for revenue generation rather than imposing additional taxes on the public.

Also Read: Why a deadlock in budget talks between PPP and Govt?