ISLAMABAD (Dunya News) - The Ministry of Finance on Thursday rejected media reports suggesting that Deputy Prime Minister and Foreign Minister Ishaq Dar had been assigned control of the federal budget-making process, calling the claims “misleading” and “factually incorrect”.
The clarification came in response to a report which claimed the government had effectively handed over budget responsibilities to Dar after expressing dissatisfaction with initial budget proposals.
According to that report, Prime Minister Shehbaz Sharif had formed a high-level committee led by Ishaq Dar to review, analyse and present tax policy proposals prepared by the Tax Policy Office under the Finance Division.
It further claimed that the committee had been given authority over finalising new tax measures and any potential relief in the upcoming budget, while another committee headed by Minister for Economic Affairs Ahad Khan Cheema was tasked with enforcement-related measures.
The report also suggested that these arrangements indicated a shift in budget authority away from the Finance Division.
However, the Finance Ministry strongly denied these assertions, stating that the formation of such committees does not amount to a transfer or sidelining of the budget-making authority.
The ministry said the committees were established to review and refine tax policy proposals in a consultative manner ahead of the federal budget.
It emphasised that such inter-ministerial coordination is a routine governance practice, particularly for fiscal measures that carry wider economic and political implications.
The statement added that the Prime Minister is fully empowered to seek input from cabinet members before finalising key budget decisions.
The ministry further clarified that the budget preparation process—including macroeconomic planning, fiscal strategy, expenditure framework, and engagement with international lenders—remains under the Ministry of Finance.
It also noted that Finance Minister Muhammad Aurangzeb continues to oversee discussions with the International Monetary Fund (IMF) and other international financial institutions.
Rejecting claims of internal divisions, the ministry said the report’s framing was misleading and did not reflect the actual institutional process.
It urged the media to report fiscal matters responsibly and with proper context, stressing that the federal budget remains a collective, cabinet-driven exercise under the leadership of the Prime Minister.