PPP may support govt in budget approval: KP Governor Kundi

Khyber Pakhtunkhwa Governor Faisal Karim Kundi stated that he believes the Pakistan Peoples Party (PPP) will not join the central government but will support its ally, the Pakistan Muslim League-Nawaz (PML-N), in getting the federal budget for the fiscal year 2024-25 approved.

"PPP and the government are currently in talks regarding the budget. We will support the government for budget approval if these talks are successful," Kundi said in an interview with RNN News on Tuesday.

Finance Minister Muhammad Aurangzeb presented the budget for the next fiscal year on June 12. However, just before his speech, PPP—an ally of PML-N in the previous government—decided to boycott the National Assembly session. Deputy Prime Minister Ishaq Dar managed to persuade PPP's leadership to attend, resulting in only a handful of PPP lawmakers making a 'token attendance'.

Governor Kundi, who also serves as PPP’s central information secretary, emphasized that the government must adhere to the terms set by the International Monetary Fund (IMF) as the budget is prepared in consultation with the global lender. He acknowledged the federal government's efforts to deliver a "good budget."

Kundi also praised Prime Minister Shehbaz Sharif's commitment to seeking IMF assistance for the last time and to freeing Pakistan from further loans.

Addressing a question about Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur, Kundi said he had not met the provincial chief executive on Eid ul Adha. "It's quite late now; it's difficult to make contact with the CM, but not impossible," he noted. The governor and the CM have a history of political rivalry between their respective parties, PPP and Pakistan Tehreek-e-Insaf (PTI).

The PPP has expressed strong reservations about not being consulted on the budget proposals. However, the ruling PML-N has assured that it will take PPP into confidence before the budget for 2024-25 is passed.

Rana Sanaullah, Adviser to the Prime Minister on Political Affairs and PML-N's Punjab president, acknowledged PPP's concerns, stating that their reservations were valid but not indicative of a total lack of consultation. "Yes, there was some lack on our side. However, the budget isn't finalized yet; we're still taking proposals," he said.

The government aims to pass the budget before the end of June, as the next fiscal year begins on July 1. The government has set a challenging tax revenue target of Rs13 trillion for the upcoming year, representing a near-40% increase from the current year, and aims to reduce the fiscal deficit to 5.9% of GDP from the current 7.4%.

The coalition government of Prime Minister Shehbaz Sharif does not have the luxury of a parliamentary majority to ensure a smooth budget passage.