ISLAMABAD: Pakistan People’s Party (PPP) Chairman Bilawal Bhutto-Zardari said on Thursday that all provinces, including the PTI-led Khyber Pakhtunkhwa government, had agreed under a constitutional mechanism to contribute towards meeting “extraordinary” defence and national security requirements.
Speaking in the National Assembly during the budget debate 2026-27, Bilawal, whose party is a key ally of the ruling PML-N, said the arrangement reflected “political maturity” and was carried out strictly within the constitutional framework through grants, not any extra-constitutional mechanism.
He said the move demonstrated that, even in periods of political division, federal and provincial governments could align on core national interests.
“This has been done in accordance with the Constitution through grants,” he said, adding that such cooperation underscored institutional stability at a time of heightened regional uncertainty.
The PPP chairman dismissed pre-budget speculation suggesting that the 18th Constitutional Amendment or the National Finance Commission (NFC) Award could be rolled back, saying such fears had not materialised.
He said provinces had agreed to shoulder additional responsibilities while the federal government had reaffirmed that the NFC framework would remain intact.
Bilawal credited the federal government, including Prime Minister Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Ishaq Dar, and the Finance Minister Muhammad Aurangzeb, and others for engaging with provinces to evolve what he described as a “constitutional and democratic solution” to shared fiscal and security challenges.
He said the country’s current economic and security environment demanded collective responsibility, arguing that neither the federation nor provinces could respond effectively in isolation. “If we address issues in this manner, we can overcome any obstacle,” he said.
Turning to economic governance, Bilawal said provincial governments were increasingly constrained by fiscal surplus requirements, limiting their ability to expand development spending.
He proposed that growing fiscal pressures on provincial governments were beginning to affect service delivery, limiting their capacity to expand development spending and maintain administrative efficiency across key sectors.
He also referred to longstanding debates over revenue instruments such as petroleum levies, arguing that while originally introduced for specific purposes, they had become embedded in the broader fiscal structure, contributing to tensions over resource distribution under the 18th Amendment framework.
The PPP chairman said sustainable economic growth required a shift in focus towards ordinary citizens.
“The progress of Pakistan is not defined by the rich becoming richer, but by expanding employment opportunities for young people,” he said.
Reaffirming support for the Benazir Income Support Programme (BISP), he said the safety net had provided critical relief to millions of households during crises, including floods and the COVID-19 pandemic, and should be further strengthened as a national safety net.
On foreign policy, Bilawal said Pakistan had consistently advocated dialogue over confrontation, describing diplomacy as the only viable path to regional stability.
He said the recent signing of a memorandum of understanding (MoU) between the United States and Iran could offer cautious optimism for peace in the region, though challenges remained.
At the same time, he warned that the region remained volatile, pointing to ongoing security concerns along Pakistan’s western border and alleging continued external threats from multiple directions.
He said the agreement between the US and Iran was a “ray of hope” for the region and the wider world, adding that it underscored the primacy of dialogue over war and diplomacy over confrontation.
Copyright Business Recorder, 2026
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