By Staff Reporter
ISLAMABAD: Pakistan’s provinces have agreed to provide an additional share of National Finance Commission (NFC) resources to the federal government for strategic expenditures, according to sources in the Ministry of Finance.
Officials said the agreement was reached after successful discussions between the technical committee led by Deputy Prime Minister and Foreign Minister Ishaq Dar and the Pakistan Peoples Party (PPP).
The arrangement will not alter the existing NFC formula used for distributing national revenues among the federation and provinces.
Under the proposed plan, Punjab is expected to contribute approximately Rs600 billion, while Sindh may provide around Rs310 billion based on the next fiscal year’s tax collection targets. The federal government has set an overall tax target of Rs15.264 trillion for the upcoming financial year, an increase of Rs2.259 trillion compared to the current fiscal year.
Sources said the federal government will continue allocating funds to provinces according to the existing fiscal year’s tax targets and is expected to return the additional grant amounts to the provinces over the coming years.
Khyber Pakhtunkhwa has also reportedly been approached regarding the grant arrangement. Officials emphasized that the agreement is aimed at supporting national strategic spending without changing the constitutional revenue-sharing mechanism.
