Centre | Pakistan

PPP Chairperson Bilawal Bhutto-Zardari said on Thursday that the federal government had promised that allocations for provinces under the 7th National Finance Commission (NFC) award would be “protected”, and that the Centre would not request any further “help or sacrifice” following the recent decision to freeze development allocations for the provinces. Bilawal joined the budget debate a day after he held a meeting with Prime Minister Shehbaz Sharif, who is reported to have convinced the head of his coalition partner PPP to attend the budget session in the NA. “The provinces’ NFC award and financial resources have been kept protected; no damage will be caused to them,” Bilawal declared while addressing the NA, which was debating the proposed federal budget for the next fiscal year (FY27). “Besides this decision, the provincial governments will not be required to make any sacrifices,” he added. The government has decided to freeze development allocations for the provinces for three years to generate more than...

Prime Minister Shehbaz Sharif on Wednesday said the Centre and the provinces had taken various decisions in the “best interest” of Pakistan as the National Economic Council (NEC) met on Wednesday. The NEC met to finalise federal and provincial development plans ahead of the presentation of the budget for the upcoming fiscal year (FY2026-27). It is the highest economic decision-making forum of the federation, led by the premier and comprising the four chief ministers and four federal ministers. “The Centre […] held consultations with the provinces on all matters with extreme seriousness, and we made decisions in the best interest of Pakistan,” PM Shehbaz said in remarks aired on television. The prime minister thanked all chief ministers for their “consultations and assistance on all matters”. PM Shehbaz noted that Punjab Chief Minister Maryam Nawaz could not attend the meeting as she was recovering after her recent medical procedure. “Today, despite having to face big challenges, our economy is stable at the m...

• Budget likely on Friday after president summons NA, Senate sessions today • National Economic Council finally set to meet today; KP still weighing participation • Federal, provincial govts to jointly cover Rs800bn shortfall • Extra FBR revenue to stay with Centre; ‘strategic needs’ may require Rs1.3-1.7tr • Sindh, Punjab agree to cut ADPs; KP, Balochistan not yet on board • Uplift plans worth Rs4.715tr likely to be revised down ISLAMABAD: Signs that the federal budget may be presented later this week emerged on Tuesday after the government finally called a meeting of the National Economic Council (NEC) on the same day that sessions of the National Assembly and Senate were summoned by President Asif Ali Zardari. A source in the NA Secretariat told Dawn that both sessions have been called budget sessions for 2026–27; however, it is expected that the budget will be presented in parliament on June 12. This echoed Parliamentary Affairs Minister Tariq Fazal Chaudhry’s words, who said on Tuesday that the budget fo...

Govt to slash PSDP by Rs126b, provinces cap spending Coalition consensus clears way for June 12 budget Centre ey

Defence Minister Khawaja Asif on Wednesday acknowledged that the Khyber Pakhtunkhwa government was standing firmly with the Centre in combatting terrorism, hailing that they were on the “same page”. He made the remarks on the floor of the National Assembly while responding to an emotionally charged speech by Jamiat Ulema-i-Islam-Fazl’s (JUI-F) Noor Alam Khan, who had criticised both the federal and provincial governments for rising terrorism in the province. “We did not have the KP government’s cooperation for a very long time, [but] now we have [it]. They are standing firmly with the Centre and the armed forces against terrorism. There is no doubt,” Asif declared. “It is a good thing that we are all on the same page,” he added. The defence minister said, “I agree with them that a solution to this issue is needed, but it is not the centre’s responsibility; it is partially, but all provinces have to contribute to this with their resources.” Asif also strongly responded to suggestions that Islamabad hold a dial...

Khyber Pakhtunkhwa Chief Minister Sohail Afridi on Tuesday announced a province-wide pen-down strike tomorrow (May 6) over the federal government’s alleged “discrimination” against KP. In a statement, CM Afridi contended that the Centre was discriminating against KP because the province has a government led by former premier Imran Khan’s PTI. “The federal government is deliberately discriminating against the province in the NFC (National Finance Commission) Award, electricity and gas,” the chief minister claimed. Since becoming the provincial chief executive in October 2025, Afridi has repeatedly accused the federal government of stalling the release of funds allocated for KP, particularly those committed for the merged districts under the NFC Award. In his announcement, the KP CM said that emergency services would be exempt from the pen-down strike. He urged all lawyers “who uphold the Constitution and the law” to participate in the strike. He also lamented that Imran and his wife Bushra Bibi were not being ...

K-P jirga to raise drone attacks with Centre

Centre, provinces close ranks on targeted relief

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday said the Centre and provinces need to set their priorities and make collective efforts to provide relief to the needy amid the global oil crisis triggered by the US-Israeli war on Iran. He made the remarks while addressing a high-level meeting, attended by Chief of Defence Forces Field Marshal Asim Munir, the chief ministers from all four provinces and federal ministers. The premier said that the Centre and provinces should utilise their resources sagaciously and curtail their development projects as much as possible while also utilising their resources on agricultural-related initiatives. “We have to spend this money on public goods and transport. Now we have to set our priorities jointly,” he added. He also highlighted the government’s initiatives to protect the economy and the common man from the adverse impact of the global oil crisis. In his remarks, PM Shehbaz also said that like other countries across the world, Pakistan was “being severely affected ...

ISLAMABAD: The federal and provincial governments on Wednesday agreed on a joint strategy to establish peace and stability in the country. An agreement to this effect was reached during an important meeting on law and order held with Minister of State for Interior Tallal Chaudhry in the chair. The development comes amid the surge of terrorist attacks, especially in Khyber Pakhtunkhwa and Balochistan, carried out by Fitna Al Khawarij and Fitna Al Hindustan — state-designated names for terror outfits backed by Indian proxies. During the meeting, the Centre assured provincial governments of the provision of necessary resources and technical support to maintain law and order. “Protection of citizens’ lives and property is the state’s top priority,” Chaudhry remarked. He also praised the security forces’ role in the fight against terrorism. “The security forces remain resolute and unwavering in their commitment to defend the nation’s frontiers and such sacrifices of our brave soldiers further strengthen our resolv...

• Punjab leads with Rs609bn cash surplus, followed by Sindh’s Rs354bn • KP transfers Rs175bn; Balochistan sends Rs41bn • Revenue-to-GDP ratio falls to 8.2pc in July-Dec despite reforms ISLAMABAD: Amid a decline in the revenue-to-GDP ratio despite purported reforms, the four provinces reached close to meeting their IMF-dictated annual target of delivering a cash surplus to the Centre within the first half of the current fiscal year. The official fiscal operations data released by the Ministry of Finance for July-December 2025 suggest the four provinces returned Rs1.18 trillion in cash to the Centre, just Rs285 billion short of the Rs1.464tr target set for the whole under the IMF’s $7bn Extended Fund Facility (EFF). During the same period last year, the provinces had jointly produced over 50 lower surpluses worth Rs775bn against the budgeted target of Rs1.2tr. With its larger fiscal muscle, Punjab led the provinces by providing Rs609bn budget surplus in six months, followed by Sindh’s Rs354bn. Khyber Pakhtunkhw...

In his first meeting with Khyber Pakhtunkhwa Chief Minister Sohail Afridi, Prime Minister Shehbaz Sharif on Monday emphasised the need for cooperation between the Centre and the KP government. The two leaders met at the PM House in Islamabad. During the meeting, which CM Afridi said was held at the premier’s invitation, the two discussed issues related to KP’s finances and counterterrorism. According to a statement reported by state broadcaster PTV News, the prime minister stressed the need for cooperation between the Centre and the provincial government for the progress and prosperity of KP’s people. “Close and effective communication between the Centre and the provinces is indispensable for national progress and public service,” the premier was quoted as saying. PM Shehbaz assured CM Afridi of the Centre’s cooperation as per its jurisdiction for KP’s development projects, infrastructure improvement, education, health and job opportunities. The prime minister termed the KP government’s cooperation in establi...

Khyber Pakhtunkhwa Chief Minister Sohail Afridi on Monday wrote a letter to Prime Minister Shehbaz Sharif over what he dubbed the Centre’s “persistent failure” to release “constitutionally guaranteed” funds, demanding the “full and unconditional” release of all outstanding federal dues. Since becoming the provincial chief executive in October last year, Afridi has repeatedly accused the federal government of stalling the release of funds allocated for KP, particularly those committed for the merged districts under the National Finance Commission (NFC). In a fresh call for the release of funds, the KP CM said: “I am compelled to place on record the deep and mounting concern of the government of Khyber Pakhtunkhwa regarding the persistent failure to release constitutionally guaranteed federal transfers.” This failure, he added, “has now translated into an acute fiscal and governance crisis for the province”. Afridi underscored that KP’s budget for fiscal year 2025-26 was framed and approved “strictly on the bas...

ISLAMABAD: Overwhel­mingly led by Sindh, the country’s total contingent liabilities arising out of public-private partnership (PPP) projects — both at the Centre and the four provinces — exceeded Rs472 billion by the end of last month, according to the Ministry of Finance. In its first of the kind “Fiscal Risk Monitoring Framework for Contingent Liabilities of PPP Projects”, in line with commitments made to the International Monetary Fund (IMF), the ministry’s Debt Management Office reported a total of Rs472.3bn in such liabilities as of Dec 2025. More than 71pc (Rs335.6bn) of the total pertained to contingent liabilities of the Sindh government, which has the largest portfolio of 17 PPP projects — almost half of 36 across the country. Total liabilities exceeded Rs472bn by end of last month The federal government’s total contingent liabilities against PPP projects amounted to Rs90.6bn, or 19.3pc of the cumulative amount, followed by Punjab at Rs26.5bn (5.6pc) and Rs19.6bn (4.2pc of the total) of the Khyber Pa...

In a meeting with Interior Minister Mohsin Naqvi on Tuesday, Khyber Pakhtunkhwa Governor Faisal Karim Kundi said that the Centre’s cooperation was vital for eliminating terrorism in the province. In a statement released on the social media platform X, the interior ministry said that Kundi called on the interior minister in Islamabad. It added that the two discussed security measures in KP’s border areas and ongoing operations against khawarij. Fitna al Khawarij is a term the state uses for terrorists belonging to the banned Tehreek-i-Taliban Pakistan (TTP). According to the statement, the interior minister gave assurances of the government’s full cooperation for peace and security in KP. “Establishing peace in KP is the top priority,” he was quoted as saying. He said that the federal government was “prepared to provide support in this regard in every possible way”. “We appreciate the sacrifices made by the people of KP in the war against terrorism,” Naqvi said. “Fitna al Khawarij and their facilitators are be...

PPP Chairman Bilawal Bhutto-Zardari on Saturday urged giving the provinces a greater role in areas such as tax collection to help address the federal government’s financial issues. The Bhutto scion was addressing the death anniversary programme for his mother, former prime minister Benazir Bhutto, in Garhi Khuda Bakhsh. Benazir was assassinated in a gun-and-bomb attack near Rawalpindi’s Liaquat Bagh on December 27, 2007, after a public gathering. The Sindh government announced a public holiday today to commemorate Benazir’s death anniversary. Foolproof security for the VVIPs, VIPs, and general public was ensured in Larkana, with over 8,500 police officers and personnel, alongside Rangers and other security agencies, deployed at and around Bhutto’s mausoleum in Garhi Khuda Bakhsh. Speaking at the event, Bilawal said the PPP was a federal party that conducted politics at both the national and provincial levels with sincerity, treating the Centre’s problems as its own. “If there is an issue of fiscal space for t...

Centre forms eight NFC committees

Finance Minister Muhammad Aurangzeb on Thursday told the inaugural meeting of the 11th National Finance Commission (NFC) that the Centre was there to listen to the stance of the provinces. State broadcaster PTV shared images from the meeting on social media platform X, which showed Aurangzeb greeting Sindh Chief Minister Murad Ali Shah and Khyber Pakhtunkhwa Chief Minister Sohail Afridi. It said that the meeting was held at the Finance Division. According to a handout issued by the finance ministry, he made the comments in his opening remarks. The minister chaired the meeting as negotiations for the sharing of federal divisible resources between the Centre and the provinces formally began. The press release said that at the outset of the meeting, the minister stressed that it had provided an opportunity for mutual cooperation, upholding constitutional responsibility. He noted that the forum was established under Article 150 of the Constitution, adding that the 10th NFC Award had expired in July this year. “In...

Special Assistant to the Prime Minister Huzaifa Rehman said on Tuesday that the Centre has asked the Punjab government to arrange a meeting between KP Chief Minister Sohail Afridi and PTI founder Imran Khan to facilitate the formation of the provincial cabinet. Imran, imprisoned since August 2023, is serving a sentence at Adiala Jail in a £190 million corruption case and also faces pending trials under the Anti-Terrorism Act related to the May 9 protests. The PTI has regularly raised concerns about the lack of access to the party founder and how family, friends and party leaders are hindered from meeting him. Afridi, who was elected as the provincial chief minister last week, was denied a meeting with Imran during a visit to the prison on Thursday. Speaking to reporters, he said he would announce his cabinet after consulting Imran and seeking his input. He claimed he had officially notified the Punjab government and the federal government of his plan to visit Adiala, but received no response, adding that Prim...

PESHAWAR: Newly-elected Chief Minister of Khyber Pakhtunkhwa Mohammad Sohail Afridi on Monday said he believed in the supremacy of the law and would confront the Centre’s every unlawful and unconstitutional step. “A narrative is being built that I will go for confrontation with the federal government. Yes, I will, if anything is done by it against the Constitution. I will continue to speak for the supremacy of the Constitution,” he told a provincial assembly session chaired by Speaker Babar Saleem Swati here. The chief minister said that he wrote letters to the chief justice of Pakistan and federal and provincial governments and even petitioned the Islamabad High Court for ensuring his meeting with detained founder of the Pakistan Tehreek-i-Insaf Imran Khan but to no avail. He said he would challenge the federal government over the continued denial of his meeting with Imran and would boycott meetings called by it. Informs assembly that there won’t be any political arrests under MPO in province Mr Afridi said ...