ISLAMABAD: Planning Minister Ahsan Iqbal has raised concerns about the current National Finance Commission (NFC) Award formula.
He said the federal government is facing financial pressure because a large share of revenue goes to the provinces. As a result, it is becoming harder for the center to fund major national projects.
Iqbal said the federal government's financial resources have become limited under the existing NFC formula. He added that this situation is affecting the completion of important development schemes and other national projects.
The minister said the government is not planning to end the Benazir Income Support Program (BISP). However, he suggested that provincial governments should pay financial support to beneficiaries living in their own provinces. According to him, poverty reduction and social welfare are provincial responsibilities under the 18th Constitutional Amendment.
Iqbal said each province should provide assistance to its residents through its own resources. He explained that this step would reduce the financial burden on the federal government. It would also allow the center to spend more money on national development projects and strategic priorities.
Launched in 2008, BISP is Pakistan’s largest social welfare program. It provides financial support to more than 10 million low-income families across the country, especially women.
The planning minister also dismissed reports that the federal government was considering placing Karachi under federal control. He said no such proposal was under discussion. His remarks came ahead of the federal budget for the fiscal year 2026-27, which is expected to be presented on June 10.
Last month, Iqbal called for changes to the NFC Award. He proposed giving incentives to provinces that successfully control population growth. He said balanced population growth is important for long-term economic stability and sustainable development.
Speaking at the launch of the National and Provincial Population Projections 2023-2050, he warned that rapid population growth has become a major challenge for the country. He said it puts pressure on health services, education, jobs, water supplies, food resources, and other basic needs.
Iqbal said Pakistan’s population could rise to between 370 million and 400 million by 2050 if the current growth rate continues. He warned that such growth could create serious economic and social challenges.
The minister noted that 82 percent of resource distribution under the NFC Award is based on population size. He said reforms are needed to encourage provinces to adopt better population management policies.
According to Iqbal, provinces that show progress in controlling population growth should receive additional benefits and recognition. He said the current system offers no strong incentive for provinces to reduce population growth rates.
