Nisar Ahmed Khuhro, President of the Pakistan Peoples Party (PPP) Sindh chapter, said the provinces' share in the National Finance Commission (NFC) award cannot be reduced.
This statement addresses the stability of fiscal transfers between the federal government and provincial administrations. Because these funds are critical for regional governance and public services, any perceived threat to the NFC award can trigger political instability and tension between the center and the provinces.
Khuhro said that the NFC award has constitutional protection. He said that while the share of provinces in the award can be increased, it cannot be reduced under the current constitutional framework [1].
According to Khuhro, there is currently no movement or demand from any quarters to decrease the provinces' share in the award [2]. He said that the legal safeguards in place ensure that the financial interests of the provinces remain secure against federal reductions [1].
"There is no demand from any quarters for a decrease in the provinces’ share in the National Finance Commission award," Khuhro said [2].
The PPP official's comments serve to reassure provincial stakeholders that the existing financial distribution remains intact. By citing the constitution, Khuhro highlighted the legal barrier that prevents the federal government from unilaterally cutting funds allocated to the provinces [1].
"The NFC award has constitutional protection; constitutionally, the share of provinces in the NFC award can be increased but not reduced," Khuhro said [1].
“The NFC award has constitutional protection.”
The National Finance Commission award is a cornerstone of Pakistan's fiscal federalism, determining how tax revenues are split between the federal government and the provinces. By emphasizing constitutional protections, the PPP is signaling its commitment to provincial autonomy and resisting any potential federal efforts to consolidate financial control during economic volatility.
