ISLAMABAD: Pakistan’s ruling party this week vowed it would win over the support of its major coalition partner, the Pakistan Peoples Party (PPP) on the federal budget before voting on it takes place, despite differences between the two over the key document.
Finance Minister Muhammad Aurangzeb unveiled the much-awaited Rs18.877 trillion ($67.76 billion) federal budget for the fiscal year 2024-25 on Wednesday in parliament. The tax-heavy budget is expected to play a pivotal role in Pakistan’s negotiations with the International Monetary Fund (IMF) for a fresh financial assistance program with the global lender.
The PPP is a major coalition ally of Prime Minister Shehbaz Sharif’s Pakistan Muslim League-Nawaz (PML-N) party. A day before the budget was presented, the PPP accused the government of ignoring its recommendations for the annual document. The party initially announced it would boycott the budget session but later, a handful of its leaders attended it.
“We are a major coalition partner of the government but they completely ignored us in the pre-budget consultations and meetings,” PPP lawmaker Sehar Kamran told Arab News.
“Shehbaz Sharif’s government wants to use us as a rubber stamp in parliament to pass the budget but we won’t do it if our reservations are not addressed.”
Kamran said the government has proposed a tax-heavy budget without consulting the PPP, adding that there were also disagreements between the two parties over the distribution of development funds and various projects related to Pakistan’s provinces.
The PPP, which voted Sharif into power after the contentious national election in February, is not part of the federal government but has its government in Pakistan’s southern Sindh province. Sharif’s government needs PPP’s votes to pass the budget in parliament.
“If the government needs our votes in parliament to pass the budget, then it will have to listen to us first to address our grievances,” she said.
Aqeel Malik, a government spokesperson, admitted the “real issues” between the PPP and the PML-N were related to the Public Sector Development Programme (PSDP) for provinces.
However, he said the government cannot take all of the PPP’s suggestions into consideration regarding provinces where the party was not in government, such as Khyber Pakhtunkhwa (KP) and Punjab.
“In Sindh, we have consulted them there and there is absolutely no issue with regards to this,” Malik told Arab News, emphasizing that the government held meetings with the PPP leadership before finalizing the budget.
He said this was the reason why a few PPP leaders had attended the budget session symbolically.
“We have had meaningful consultation with them,” Malik explained. “We have taken them on board and we consulted them.”
The government is committed to resolving the PPP’s issues regarding the budget, Malik said, hoping the party would “come around” once voting takes place.
“If there is any tweaking in the budget with regards to their suggestions or recommendations, we will certainly consider them favorably and will try to include them before the voting takes place,” he said.
PM Sharif’s coordinator, Rana Ihsan Afzal, confirmed the government was ready to address the PPP’s reservations on the budget before it is voted upon.
“We are engaging with them [the PPP] thoroughly,” Afzal told Arab News.
As per media reports, the general debate on the budget will begin on June 20 while voting on it is expected to take place on June 24.
Amid differences, Pakistan’s ruling party vows to win major ally’s support on budget
https://arab.news/23gr6
Amid differences, Pakistan’s ruling party vows to win major ally’s support on budget
- Pakistan Peoples Party, a key government ally, has accused ruling party of ignoring its budget recommendations
- Will consider PPP’s recommendations “favorably” and try to include them in the budget before voting, says official
Pakistan issues over $7 billion sukuk in 2025, nears 20 percent Shariah-compliant debt target
- Finance Adviser Khurram Schehzad says this was the highest-ever Sukuk issuance in a single calendar year since 2008
- Pakistan’s Federal Shariat Court ordered in 2022 the entire banking system to transition to Islamic principles by 2027
ISLAMABAD: Pakistan’s Finance Adviser Khurram Schehzad on Monday said the country achieved a landmark breakthrough in Islamic finance by issuing over Rs2 trillion ($7 billion) sukuk this year, bringing it closer to its 20 percent Shariah-compliant debt target by Fiscal Year 2027-28.
A sukuk is an Islamic financial certificate, similar to a bond, but it complies with Shariah law, which forbids interest. Pakistan’s Federal Shariat Court (FSC) had directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027.
Following the ruling, the government and the State Bank of Pakistan (SBP) have undertaken a series of measures, including legal reforms and the issuance of sukuk to replace interest-based treasury bills and investment bonds.
“In 2025, the Ministry of Finance (MoF) through its Debt Management Office, together with its Joint Financial Advisers (JFAs), successfully issued over PKR 2 trillion in Sukuk,” Schehzad said on X, describing it as “the highest-ever Sukuk issuance in a single calendar year since 2008 by Pakistan.”
Pakistan made a total of 61 issuances across one-, three-, five- and 10-year tenors, according to the finance adviser. The country also successfully launched its first Green Sukuk, a Shariah-compliant bond designed to fund environment-friendly projects.
He said the Green Sukuk was 5.4 times oversubscribed, indicating investor demand was more than five times higher than the amount the government planned to raise, which showed strong market confidence.
“The rising share of Islamic instruments in the government’s domestic securities portfolio (domestic debt) underscores strong momentum, growing from 12.6 percent in June 2025 to around 14.5 percent by December 2025, clearly positioning the MoF to achieve its 20 percent Shariah-compliant debt target by FY28,” Schehzad said.
“This milestone also reflects the structural deepening of Pakistan’s Islamic capital market, sustained investor confidence, and the strengthening of sovereign debt management.”
He said Pakistan was strengthening its government securities market by making it more resilient, diversified, and future-ready, supported by a stabilizing macroeconomic environment, a disciplined debt strategy, and a clear roadmap for Islamic finance.










