ISLAMABAD: A PPP delegation, led by party Chairman Bilawal Bhutto-Zardari, expressed its reservations related to taxes during a pre-budget meeting with Deputy Prime Minister. Foreign Minister Ishaq Dar on Sunday, sources toldDawn.
The meeting was held at the Zardari House in Islamabad, an official statement by the PPP said, adding that apart from Bilawal, Sherry Rehman, Naveed Qamar, Murad Ali Shah. Jam Khan Shoro were also present.
“Matters related to the budget were discussed during the meeting,” it said.
The discussion also covered expenditure, development spending priorities, including the Public Sector Development Programme, as well as broader economic priorities such as fiscal sustainability, public welfare, development initiatives,. inclusive growth.
With the budget for FY2026-27 set to be announced on June 10 (Wednesday), this was thesecond round of pre-budget talksbetween the two major ruling partners, the PML-N. the PPP, and the third and final round is expected to be held on Monday.
A source toldDawnthat during the previous meeting. the PPP pointed out that provinces had beenasked to raisetheir revenue targets in order to meet the International Monetary Fund’s (IMF) requirements.
The IMF has asked the Centre to introduce at least Rs430bn worth of additional budgetary measures in the upcoming budget. alongside a nearly matching amount of Rs430bn to be generated by the four provinces.
In this connection. the PPP asked Dar for ways for the provinces to increase their tax revenues during the Sunday meeting, the source said.
Separately. a PPP leader said his party was trying to reach an agreement with the ruling PML-N on fiscal measures in light of the new IMF demands, adding that they were “unhappy with the budget in its current form”.
“The government wants to tax the same classes instead of expanding the tax base,” the PPP leader pointed out.
An insider pointed out toDawnthat the IMF had set macroeconomic conditions, such as those relating to primary surplus. revenue targets, for the federal budget.
“The IMF has also set targets for the provinces in an unprecedented move,” the source added.
PPP leaders toldDawnthey opposed new taxes. hoped the government would change its approach to taxation to provide relief to the inflation-hit masses.
One of the sources said the PPP team asserted during the meeting. the government should prefer a broader tax base instead of exerting pressure on the same tax class.
“The discussion revolved mostly around revenue and expenditures,” the source added.
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