budget deadlock between government and PPP coalition continues

Islamabad: A deadlock between the government and its coalition partner, the Pakistan Peoples Party (PPP), over budget-related matters remains unresolved despite an emergency meeting between a government delegation and PPP leadership.

According to sources within the PPP, efforts are ongoing from both sides to resolve the impasse through continued dialogue.

PPP sources said the party has serious reservations regarding additional federal subsidies to the provinces and the development budget. Key points of disagreement include the K-IV water project, lack of funding for development schemes, and the Karachi–Sukkur Motorway project.

Sources further stated that the federal government is reportedly allocating funds for only one province, while three other major projects are being deprived of financing, which has deepened concerns within the PPP.

The party has submitted its written recommendations to the government regarding the budget. Officials said the government will review the proposals and respond accordingly, after which further negotiations are expected.

Earlier, it was reported that the federal government is demanding Rs 1,700 billion in contributions from the provinces. Prime Minister’s Adviser on Political Affairs Rana Sanaullah stated that discussions are ongoing around a “single figure” for the budget, and until resources are aligned with that figure, finalizing the budget will remain difficult.