What happened
Pakistan’s ruling coalition moved closer to agreement on the federal budget for fiscal year 2026-27 on Monday after Prime Minister Shehbaz Sharif met Pakistan Peoples Party (PPP) chairman Bilawal Bhutto Zardari, with the PPP signalling support after several of its proposals were accepted.
The government postponed the budget presentation for a second time. The budget had originally been scheduled for 5 June before being moved to 10 June, and a new date was expected to be announced soon.
The meeting at the Prime Minister’s House was attended by President Asif Ali Zardari, Finance Minister Muhammad Aurangzeb, Deputy Prime Minister Ishaq Dar, PPP leaders Naveed Qamar and Sherry Rehman, and budget committee members from both the PPP and the PML-N. Sharif congratulated Bilawal on the PPP’s recent victory in the Gilgit-Baltistan elections.
President Zardari and Prime Minister Sharif also held a separate high-level meeting at Aiwan-e-Sadr covering national security, economic priorities, the upcoming budget and regional developments. Zardari stressed that the budget should prioritise public welfare, provincial rights and economic stability, while Interior Minister Mohsin Naqvi briefed the president on his recent visit to Iran and ongoing regional diplomatic engagements.
Sharif and Bilawal also held separate consultations on the political and administrative situation in Pakistan-administered Kashmir. Bilawal briefed the prime minister on public sentiment and the challenges facing the region, and urged that political challenges be addressed through democratic dialogue and parliamentary mechanisms, while the federal government reiterated that there would be no compromise on peace, stability and the rule of law.
Why it matters
The delay reflects the competing pressures on the coalition as it tries to close the budget. The budget has now been postponed twice, with coalition differences and outstanding issues with the International Monetary Fund (IMF) cited among the reasons, and the National Economic Council meeting linked to budget preparations has also been postponed several times.
The meeting followed the PPP’s pre-budget consultations with Deputy Prime Minister Ishaq Dar on 7 June, where the party sought a broader tax base rather than fresh levies. IMF approval is still awaited on proposals including tax relief for the salaried class, leaving the timeline for the budget and the accompanying Economic Survey uncertain. A budget presented later than planned compresses the window for the National Assembly to scrutinise revenue and spending measures before the fiscal year begins on 1 July.
Sources & reporting notes
This is a summary of published reporting, not independent reporting. Details are as carried by the cited source, which was reviewed on 2026-06-08.
- Nukta — "Pakistan's budget delayed again after coalition talks ease tensions"8 June 2026 · The PM-PPP meeting and its attendees, the second postponement of the budget, the presidency meeting, and the outstanding IMF and NEC issues.
