ISLAMABAD: The Pakistan Peoples Party (PPP) has agreed to support the 2025–26 federal budget after the ruling Pakistan Muslim League-Nawaz (PML-N) addressed several of its critical concerns, sources revealed on Tuesday.
A major breakthrough came when the government approved the restoration of a Rs 4.6 billion grant for public universities—one of PPP’s primary demands.
The agreement followed high-level discussions, including a meeting between President Asif Ali Zardari and Prime Minister Shehbaz Sharif in Islamabad.
The government also agreed to cut the proposed 18% sales tax on solar panels to 10%, reflecting flexibility to accommodate PPP’s stance.
In another key move, federal projects in Sindh will be transferred under provincial control, a long-standing PPP request aimed at decentralizing development.
Infrastructure and Budget Concessions Included
As part of the deal, the Sukkur-Hyderabad Motorway project will be financed through a loan from the Islamic Development Bank.
Work is expected to start soon, with a completion target of two to three years.
The consensus between the parties ensures smooth passage of the budget in the National Assembly and prevents political deadlock over fiscal policy.
Notably, the Pakistan Tehreek-e-Insaf (PTI) had called on PPP to boycott the budget vote in an attempt to block its approval.
However, with this agreement in place, the PPP is now fully on board to support the finance bill.
Leadership Meeting Focuses on Economic Relief
Earlier on Tuesday, PM Shehbaz Sharif briefed President Zardari on his official visit to the United Arab Emirates and the main features of the upcoming budget.
President Zardari emphasized the need to focus the budget on the welfare of workers, low-income groups, and the underprivileged.
He also called for protective measures for the salaried class, pensioners, and laborers, who are facing mounting economic challenges.
The meeting was also attended by Deputy Prime Minister Ishaq Dar, Ahsan Iqbal, Azam Nazeer Tarar, and Senator Saleem Mandviwalla.
This development indicates a strengthening alliance between PPP and PML-N, setting the stage for a stable fiscal year ahead.
