- Strategic national projects becoming difficult to complete.
- Poverty alleviation falls under provincial governments’ mandate.
- Minister dismisses reports of federal control proposal.
ISLAMABAD: Federal Minister for Planning Ahsan Iqbal has expressed concern over the existing National Finance Commission (NFC) Award formula, saying the federal government is facing financial difficulties due to revenue-sharing arrangements with the provinces, making it increasingly challenging to complete strategic national projects.
Speaking on Geo News programme ‘Naya Pakistan’, Iqbal said the federation’s fiscal space had shrunk under the current NFC formula, affecting its ability to finance key development initiatives and other strategic projects.
The minister clarified that the Centre was not advocating the abolition of the Benazir Income Support Programme (BISP), but suggested that provincial governments should assume responsibility for funding beneficiaries belonging to their respective provinces.
He argued that, under the 18th Constitutional Amendment, poverty alleviation and social welfare programmes fall within the jurisdiction of provincial governments.
“Our proposal is that the province to which a beneficiary belongs should provide the financial assistance, as poverty reduction is a provincial responsibility under the 18th Amendment,” he said.
Launched in 2008, BISP is Pakistan’s flagship poverty alleviation and social safety programme, providing financial assistance to more than 10 million low-income families, particularly women.
Ahsan maintained that such an arrangement would ease the financial burden on the federal government and allow it to focus greater resources on national development priorities and strategic projects.
The planning minister also rejected reports suggesting that placing Karachi under federal administrative control was under consideration, saying no such proposal was being discussed by the government.
The remarks come as the federal government is set to table the budget for the fiscal year 2026-27 on June 10.
Last month, Iqbal called for incentives for the provinces in the NFC Award that successfully controlled their population growth, emphasising that encouraging a balanced population growth was essential for Pakistan’s sustainable development and economic stability.
Addressing the launching ceremony of the National and Provincial Population Projections 2023-2050, he said uncontrolled population growth had become a major challenge for sustainable development, economic progress, and effective utilisation of national resources, The News reported.
He warned that if the current growth rate continued, Pakistan’s population could reach between 370 to 400 million by 2050, placing immense pressure on health, education, employment, water, food, and other basic services.
The minister stressed that 82% of resource distribution under the NFC Award was linked to population share; therefore, reforms were needed in the system to encourage provinces to adopt responsible population management policies.
Currently, there is no effective incentive for provinces to reduce the population growth rates, he said, adding that the provinces demonstrating improvement in population management should be rewarded with additional incentives and recognition.
