'Govt can collapse in 5 min ...': Pakistan's ruling coalition on edge as allies blast federal Budget

File: Pakistan PM Shehbaz Sharif addresses National Assembly (AFP)

Pakistan’s ruling coalition is showing signs of strain as two key allies PML-N — PPP and MQM-P — have launched a scathing attack on the federal budget for the upcoming fiscal year, raising questions about its passage in the National Assembly.

This comes as Pakistan has increased its defence spending by a staggering 20% after last month's conflict with India even as it navigates financial challenges and a sluggish economy.

According to a report in Dawn, several lawmakers from PPP and MQM-P — both Sindh-based parties — voiced strong objections to the government’s budget proposals during what was described as a lacklustre debate in the National Assembly.

The discontent stems primarily from the expansion of the tax net and the allegedly arbitrary powers being granted to the Federal Board of Revenue (FBR), which critics say could target small businesses and non-filers disproportionately, the report said.

The dissenting voices also slammed the Shehbaz Sharif-led coalition government for neglecting Sindh, particularly Karachi, and expressed anger over the minimal allocation for the under-construction Sukkur-Hyderabad Motorway. A proposed 18% tax on solar panels further fuelled frustration among members, who demanded its withdrawal, Dawn reported.

“Whatever is the party policy, how can we vote for an anti-Sindh budget and when the federation treats Sindh step-motherly?” PPP’s Nabil Gabol asked during the debate, as per Dawn. Gabol warned that the current government stands on the strength of PPP’s 70 votes and could collapse "within five minutes" if that support is withdrawn.

The ongoing discord raises the stakes for Prime Minister Shehbaz Sharif’s government, especially given the country’s fragile fiscal condition. Yet, in a move that raises eyebrows, Islamabad has significantly hiked its defence budget—reportedly by 20%—amid continued tensions with India, particularly following recent border skirmishes and heightened rhetoric from both sides.

PPP leaders Syed Khursheed Shah and Syed Naveed Qamar reportedly met Deputy Prime Minister Ishaq Dar on the sidelines of the session to convey their party’s concerns. Dawn reported that Dar promised to take up the matter with the Prime Minister and address their grievances.

MQM-P and PPP lawmakers criticised new legal provisions—such as Section 114C of the finance bill—that they argue violate constitutional rights and grant sweeping enforcement powers to the FBR. PPP’s Abdul Qadir Patel remarked that the budget wrongly assumes the party’s support is guaranteed.

“The government has a delusion that the PPP will support the budget. This is not the case,” Patel said.

The political crisis in Pakistan also underpins the Sharif government's skewed priorities, with Pakistan allocating Rs 2.55 trillion rupees on defence (20% rise from FY25) despite slashing overall spending.