ISLAMABAD: The federal government and provincial governments have agreed on a three-year financial framework aimed at maintaining fiscal stability, preserving the existing National Finance Commission (NFC) formula, and ensuring a balanced contribution mechanism to meet national requirements.
Pakistan People’s Party (PPP) Chairman Bilawal Bhutto Zardari said this while addressing a meeting of the joint parliamentary party of the PPP at the Parliament House on Friday.
He said, “Under the agreement, the federal government will receive only the agreed share from the provinces, and no additional funds will be sought from them in the future.”
Bilawal said the agreement was designed to preserve financial balance between the federation and provinces, ensure continuity in the fiscal system, and avoid imposing additional financial burdens on any province.
He said, “The agreement, reached between the federal government and the Sindh government through consultation and negotiations, provides a clear roadmap for coordinated fiscal responsibilities among all provinces. The national needs will be addressed through a shared framework under which all provinces would continue to fulfill their obligations, while the existing NFC Award formula would remain unchanged, and financial distributions would continue under the NFC-7 arrangement.”
Bilawal said that Pakistan is facing serious regional security and geopolitical challenges, but stressed that all political forces must work together within the constitutional framework to address them without disturbing the NFC Award or provincial financial shares.
He said Pakistan had confronted major security pressures, including tensions with India following last year’s conflict, and alleged that hostile elements were attempting to destabilise the country through regional proxies. He also referred to ongoing concerns along the Afghan border, claiming that cross-border militancy continued to pose challenges from Balochistan to Khyber Pakhtunkhwa.
He said shifting regional geopolitics required urgent strategic decisions, noting fears of wider global instability. However, he strongly opposed proposals to reduce provincial shares in the National Finance Commission (NFC) Award or roll back the 18th Constitutional Amendment.
Bilawal argued that instead of weakening the provinces, the focus should be on strengthening revenue generation through constitutional means and empowering provincial revenue authorities. He suggested that fiscal responsibilities should be clearly defined rather than recentralised, saying provinces were already contributing effectively to national development.
He welcomed what he described as a consensus between the federation and provinces, saying Sindh and Balochistan had agreed to contribute additional resources for national security needs over the next three years under the existing NFC framework, without altering the award or constitutional structure.
Bilawal Bhutto thanked Deputy Prime Minister Ishaq Dar and the party’s negotiation team for what he described as “good-faith efforts” to settle on national financial needs. He said the agreement reflected cooperation between the federation and provinces in meeting security and development requirements through a political process.
Bilawal also said the federal government was presenting the budget under the agreed framework and stressed that all stakeholders, including opposition-ruled provinces, were part of the arrangement.
Referring to regional developments, he expressed concern over the situation in Kashmir and alleged attempts by hostile elements to destabilise Pakistan through regional proxies. He said Pakistan’s stance required a unified state response beyond political differences.
He reiterated that the PPP believed in resolving issues through political means and criticised past political arrangements in Azad Jammu and Kashmir, saying the party had been denied its mandate in earlier setups. He added that political exclusion created governance gaps, while inclusion of genuine political forces strengthened stability.
He highlighted past counter-terrorism operations in regions including former FATA, South Waziristan, Swat, and North Waziristan, saying they were conducted with political consensus and support under the National Action Plan.
They said military operations were carried out with parliamentary backing and that similar unity is needed today to address security challenges.
Copyright Business Recorder, 2026