ISLAMABAD: The government and its major ally, the PPP, on Monday reached a consensus on the broad framework of the federal budget for 2026-27 during the third round of talks between the two sides. However, the budget will not be announced on June 10 and has been delayed further due to technical reasons.
The latest round of talks concluded at a meeting held at Aiwan-i-Sadr with President Asif Ali Zardari in the chair.
Prime Minister Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Ishaq Dar, PPP Chairman Bilawal Bhutto-Zardari, Interior Minister Mohsin Naqvi, Law Minister Azam Nazeer Tarar, PM’s Adviser on Political Affairs Rana Sanaullah, Finance Minister Muhammad Aurangzeb, Sindh Chief Minister Syed Murad Ali Shah, Azad Jammu and Kashmir Prime Minister Raja Faisal Rathore, MNA Raja Pervaiz Ashraf, Senator Sherry Rehman, MNA Syed Naveed Qamar, Senator Saleem Mandviwalla and Senator Ahad Cheema attended the meeting, according to a brief statement issued by the Presidency.
The huddle between the two sides was held in two phases, first at the delegation level and then in a final round involving top leadership.
After the first meeting, Federal Minister Ahsan Iqbal said the government had reached a “complete understanding” with the PPP on the Public Sector Development Programme (PSDP) and the development budget.
He added that top-level political consultations and delegation-level talks would continue to address the remaining budgetary demands.
Presiding over the meeting at Aiwan-i-Sadr, President Zardari told PM Shehbaz that the upcoming 2026-27 federal budget should prioritise “public welfare, provincial rights and economic stability”, the statement released by the Presidency said.
It added that the president directed that every effort should be made to harmonise economic growth with public welfare initiatives in the upcoming budget.
National security, as well as the internal and regional situation, were also discussed.
According to the statement, Interior Minister Mohsin Naqvi briefed the president on his recent visit to Iran and regional diplomatic engagements.
Apart from the federal budget and national security, the meeting also discussed the economy, the recent Gilgit-Baltistan elections, the situation in Azad Jammu and Kashmir, law and order, and other matters of national importance.
Published in Dawn, June 9th, 2026