Sindh committed to protecting its share under NFC award: spokesman

KARACHI: The Government of Sindh reaffirmed its unwavering commitment to protect the constitutional rights and fiscal share of the province in the upcoming National Finance Commission (NFC) deliberations.

This comes at a decisive moment for Pakistan’s economic governance, with the IMF’s latest Governance and Corruption Diagnostic Report (2025) underscoring critical weaknesses in federal fiscal transparency, state capacity and institutional performance. “The NFC Award is not merely a mechanism of distributing financial resources — it is a constitutional guarantee of fairness, equity, and balanced development across all provinces,” said government of Sindh spokesperson Sukhdev Hemnani in a statement here.

Hemnani noted that the last NFC Award was finalised before the abolition of the concurrent legislative list. After the 18th Amendment, provinces shoulder significantly expanded responsibilities in health, education, social protection, and key service-delivery sectors. Any suggestion of reducing provincial shares contradicts both constitutional design and the practical needs of governance, he said.

He recalled that under the last fiscal arrangements, it was agreed that FBR’s tax-to-GDP ratio would be raised to 15 percent, yet this target remains unrealized even today. “Pakistan loses more than 5–6 percent of GDP annually to tax evasion and smuggling, and a similar magnitude is lost to governance lapses, mismanagement and improper subsidies. These structural failures - not provincial shares - are the true source of the fiscal strain Pakistan faces.”

He added that Sindh’s position is grounded in both constitutional clarity and economic logic: strong provinces create a stronger federation. “Sindh will present its proposals clearly and firmly. Our focus is fiscal justice, provincial autonomy and transparent governance aligned with the constitutional vision.”

“The Government of Sindh remains committed to constructive engagement in the upcoming NFC meeting. We will fully safeguard provincial rights while working cooperatively to strengthen Pakistan’s overall fiscal architecture,” Hemnani underscored.

Copyright Business Recorder, 2025