ISLAMABAD: Deputy Prime Minister Ishaq Dar on Sunday assured the PPP of incorporating its proposals in the federal budget for the fiscal year 2026-27, scheduled to be announced on June 10, during another round of talks between the ruling PML-N and its main ally.
PPP Chairman Bilawal Bhutto-Zardari led his team comprising Sindh Chief Minister Syed Murad Ali Shah, Senator Sherry Rehman and MNA Syed Naveed Qamar. The meeting took place at Zardari House.
The huddle was originally scheduled for Saturday, but was postponed to Sunday due to the PPP chairman’s other engagement regarding elections in Gilgit-Baltistan.
A source privy to the meeting told Dawn that a third round of talks between the two sides will take place today (Monday), and is expected to be attended by Prime Minister Shehbaz Sharif upon his arrival from Lahore.
It has been learnt that the government resisted some of the PPP’s proposals, but Mr Dar appeared to acknowledge the demands and assured the party that they would be met.
According to another source, the PPP also raised the question that the International Monetary Fund (IMF) has, for the first time, asked provinces to enhance their revenue targets, and asked the deputy prime minister how they could generate additional tax revenue.
A PPP leader said they were trying to reach an agreement with the government on fiscal measures in light of the new IMF demands, adding that they were unhappy with the budget in its current form.
The PPP source said the government wanted to tax the same classes, instead of expanding the tax base.
According to the insider, this is the first time that the IMF has dictated macroeconomic conditions, such as primary surplus and revenue targets, for the federal budget.
The lender has also set targets for the provinces in an unprecedented move, the source added.
PPP leaders told Dawn they opposed new taxes and hoped the government would change its approach to taxation to provide relief to inflation-hit masses.
The source said the PPP team asserted that the government should prefer a broader tax base instead of exerting pressure on the same class, which is already paying taxes.
“The discussion revolved mostly around revenue and expenditure,” the source added.
According to the official handout, the discussions focused on current expenditure and development spending priorities, including the Public Sector Development Programme, as well as broader economic priorities such as fiscal sustainability, public welfare, development initiatives, and inclusive growth.
Published in Dawn, June 8th, 2026
