Pakistan, June 10 -- The federal government and the Pakistan Peoples Party (PPP) have reached a key financial understanding ahead of the 2026-27 budget, paving the way for consensus on fiscal matters and easing concerns over resource distribution between the federation and provinces.

According to sources, negotiations between the government's technical committee and the PPP concluded successfully during a meeting chaired by Deputy Prime Minister Ishaq Dar. The talks focused on revenue-sharing arrangements and measures to support the federal government's fiscal requirements in the upcoming financial year.

Under the agreement, the federation is expected to receive additional funds linked to the increased tax collection target for the next...