Finance Ministry rejects reports of budget “Handover” to Ishaq Dar

The Ministry of Finance on Thursday dismissed media reports claiming that Prime Minister Shehbaz Sharif had handed over the federal budget-making process to Deputy Prime Minister Ishaq Dar, calling the interpretation “factually incorrect” and “misleading.”

The clarification was issued in response to a report suggesting a shift in control of budget preparation, which the ministry said misrepresented the constitution of a high-level review committee as a transfer of authority from the Finance Division.

According to the ministry, the committee formed by the prime minister is limited to reviewing selected tax policy proposals prepared by the Tax Policy Office for the upcoming budget.

It said such consultative and inter-ministerial mechanisms are routine and do not constitute any change in the institutional role of the Finance Division.

The ministry stressed that the federal budget continues to be prepared by the Ministry of Finance under the leadership of Finance Minister Muhammad Aurangzeb.

It added that Aurangzeb also remains responsible for Pakistan’s engagement with the International Monetary Fund and other international financial institutions on macroeconomic and budgetary matters.

The statement further clarified that the prime minister is constitutionally empowered to seek input from cabinet members on tax measures that may affect inflation, investment, business activity and the broader economy.

It also noted that a separate committee on enforcement measures has been established to refine revenue administration proposals in consultation with stakeholders.

The ministry said the overall budget process remains a cabinet-driven and coordinated exercise, with the Finance Division retaining its central role throughout.

It urged media outlets to avoid speculative reporting and to present institutional developments with proper context and accuracy.