Islamabad: Federal Minister for Planning, Ahsan Iqbal, has voiced serious concerns regarding the current National Finance Commission (NFC) Award formula, highlighting the financial constraints it imposes on the federal government. He explained that the revenue-sharing arrangement with provinces has significantly reduced the federal government’s fiscal space, making it increasingly difficult to complete vital national development and strategic projects.
During a discussion on the programme ‘Naya Pakistan,’ Iqbal clarified that the federal government does not intend to abolish the Benazir Income Support Programme (BISP). Instead, he proposed that provincial governments take on the responsibility of funding beneficiaries residing within their territories. He emphasized that poverty alleviation and social welfare fall under provincial jurisdiction as per the 18th Constitutional Amendment.
“Our suggestion is that financial assistance should be provided by the province where the beneficiary lives, since poverty reduction is a provincial matter under the 18th Amendment,” he stated. Launched in 2008, BISP remains Pakistan’s flagship social safety net, supporting over 10 million low-income families, mainly women.
Ahsan Iqbal argued that transferring this responsibility to provinces would relieve the federal government’s financial burden, enabling it to allocate more resources toward national development priorities and strategic initiatives. He also dismissed rumors about placing Karachi under federal administrative control, confirming that no such proposal is under government consideration.
These comments come ahead of the federal budget announcement for the fiscal year 2026-27, scheduled for June 10. Last month, the minister advocated for incentives within the NFC Award for provinces that effectively manage population growth, underscoring its importance for sustainable development and economic stability.
Speaking at the launch of the National and Provincial Population Projections 2023-2050, Iqbal warned that unchecked population growth poses a significant challenge to development, economic progress, and resource management. He projected that Pakistan’s population could surge to between 370 and 400 million by 2050, intensifying pressure on health, education, employment, water, food, and other essential services.
The minister highlighted that 82% of resource distribution under the NFC Award is based on population share, calling for reforms to incentivize provinces to adopt responsible population control policies. Currently, there are no effective rewards for provinces that reduce population growth rates. He proposed that provinces demonstrating progress in population management should receive additional incentives and recognition to encourage sustainable demographic policies.
