Bilawal says NFC allocations protected, calls for long-term economic reforms

ISLAMABAD: Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari on Thursday said the federal government had assured provinces that their allocations under the Seventh National Finance Commission (NFC) Award would remain protected, while emphasizing the need for sustainable economic reforms beyond temporary fiscal measures.

Speaking during the budget debate in the National Assembly, Bilawal said the Centre had pledged not to seek any further financial sacrifices from the provinces after the decision to freeze provincial development allocations for three years to meet national strategic requirements.

“The provinces’ NFC award and financial resources have been protected, and no harm will be caused to them,” he said, adding that provincial governments would not be required to make additional sacrifices beyond the agreed arrangement.

Bilawal explained that the federal and provincial governments had jointly agreed to share the burden of extraordinary defence and national security requirements through a constitutional mechanism under Article 164 of the Constitution.

He thanked Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb for engaging with the PPP and reaching what he described as a constitutional and democratic solution.

Calling the agreement a success for democratic politics, Bilawal said it demonstrated that political parties and institutions could work together when national interests were at stake.

However, he termed the arrangement a temporary measure and urged federal and provincial governments to develop a long-term growth strategy focused on sustainable economic development.

The PPP chairman also rejected perceptions that provinces enjoyed excessive fiscal space after the 18th Constitutional Amendment and the NFC Award, arguing that no province had received its full share of resources.

He criticised the continued collection of the Petroleum Development Levy (PDL), claiming that provinces were being deprived of revenues that should be distributed under the NFC formula.

Bilawal further highlighted the financial sacrifices made by provinces to help Pakistan meet International Monetary Fund (IMF) requirements, noting that provincial budget surpluses had limited spending on public welfare and development projects.

Discussing the regional security environment, he praised Pakistan’s leadership for its diplomatic efforts in promoting peace and said economic development could only flourish in a stable regional environment.

Turning to the situation in Azad Jammu and Kashmir (AJK), Bilawal urged protesters to pursue their demands through constitutional and parliamentary channels rather than street agitation. He reiterated support for the representation rights of Kashmiri refugees and called for dialogue to address concerns surrounding reserved seats in the AJK Legislative Assembly.

The PPP chairman also renewed his party’s demand for greater constitutional rights for the people of Gilgit-Baltistan, proposing that representatives from the region be allowed to participate in parliamentary proceedings on an interim basis until a permanent constitutional arrangement is reached.

He said the people of Gilgit-Baltistan deserved representation, resources and governance rights, and pledged to continue efforts to build national consensus on the issue.