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PPP shares tax-related reservations in pre-budget meeting with Dar, say sources

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 and Foreign Minister Ishaq Dar on Sunday, sources told Dawn . 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 and 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, and inclusive growth. With the budget for FY2026-27 set to be announced on June 10 (Wednesday), this was the second round of pre-budget talks between the two major ruling partners, the PML-N and the PPP, and the third and final round is expected to be held on Monday. Sources told Dawn that Dar assured the PPP that their proposal would be incorporated in the budget. A source told Dawn that during the previous meeting, the PPP pointed out that provinces had been asked to raise their 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, 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 to Dawn that IMF had set macroeconomic conditions, such as those relating to primary surplus and revenue targets, for the federal budget. “The IMF 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 the inflation-hit masses. One of the sources said the PPP team asserted during the meeting that 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.