ISLAMABAD: The government has brokered a sweeping fiscal compact with its two most populous provinces, freezing their shares of national tax revenues and redirecting a portion back to the Centre in a financial restructuring that officials say is essential to fund defence priorities and honour commitments to the International Monetary Fund.
Economy
Pakistan sets June 12 for budget as provincial revenue standoff clouds NEC meeting
ISLAMABAD: The government plans to present its federal budget for fiscal year 2026-27 to the National Assembly on June 12, Parliamentary Affairs Minister Tariq Fazal Chaudhry said Tuesday, as Islamabad moved to lock in a date after weeks of delays driven by coalition friction and a deepening dispute with provincial governments over revenue sharing.
Rift in PTI deepens as 30 rebel lawmakers threaten to block KP budget to press for Imran Khan’s release
PESHAWAR: The ruling Pakistan Tehreek-e-Insaf faces a deepening internal rebellion in Khyber Pakhtunkhwa, where more than 30 members of the provincial assembly have coalesced into a dissident bloc demanding aggressive action to secure the release of the party’s imprisoned founder, Imran Khan — and threatening to bring down the provincial government’s budget if their demands are not met.
Pakistan’s budget teeters as centre seeks to claw back Rs1.2 trillion from provinces
ISLAMABAD: Pakistan’s budget preparations descended into open disarray on Monday as the government postponed a key economic planning meeting for the third consecutive time, struggled to win International Monetary Fund backing for a controversial revenue-sharing manoeuvre, and faced a provincial revolt over a demand to claw back more than Rs1.2 trillion that would otherwise flow to the country’s four provinces under a constitutional formula.
Ruling allies strike budget deal, but date remains in flux
ISLAMABAD: Pakistan’s two principal ruling coalition partners reached broad agreement on Monday on the framework for the country’s federal budget, with the Pakistan Peoples Party signalling it would back the fiscal plan put forward by Prime Minister Shehbaz Sharif’s Pakistan Muslim League-Nawaz government — even as uncertainty lingered over when the budget would actually be presented.
Pakistan receives second spot LNG cargo since Iran war upended regional energy trade
KARACHI: A liquefied natural gas tanker docked at Karachi’s Port Qasim on Sunday, marking only the second spot cargo the country has received since the Iran war severed regional energy supply chains and effectively closed one of the world’s most critical maritime chokepoints.
Ruling coalition partners clash over tax policy ahead of federal budget
ISLAMABAD: Pakistan’s two largest ruling parties clashed over taxation strategy on Sunday as they raced to iron out budget differences before Finance Minister Muhammad Aurangzeb presents the federal spending plan to parliament in less than 72 hours.
NEC meets to recast Rs4.715 trillion development budget amid IMF pressure, coalition tensions
ISLAMABAD: The National Economic Council convenes on Monday under Prime Minister Shehbaz Sharif to overhaul a combined federal and provincial development program worth Rs4.715 trillion, with officials signalling the final numbers could shift substantially from what a subordinate planning body cleared just days ago — a reflection of the competing fiscal pressures bearing down on a government simultaneously managing an IMF bailout and an uneasy coalition.
Pakistan, Saudi Arabia sign deal to develop 140-acre Karachi Port waterfront
ISLAMABAD: Pakistan has signed a preliminary agreement with a Saudi-linked investment group and two domestic firms to explore developing a 140-acre commercial district on prime waterfront land controlled by the Karachi Port Trust, as Islamabad deepens its courtship of Gulf capital for large-scale infrastructure.
Pakistan’s largest data centre project takes shape with $230 mln Huawei tie-up
KARACHI: A Pakistani data centre venture backed by the Gul Ahmed Energy Group said it had signed a partnership agreement with Huawei’s local unit to build the country’s largest Tier III data centre, with an initial investment of $230 million that could climb to $600 million within four years.