PPP's Bilawal tells National Assembly NFC allocations will not be reduced

PPP Chairman Bilawal Bhutto-Zardari told the National Assembly on Thursday that the federal government has guaranteed provincial financial allocations under the 7th NFC award will not be reduced, assuring provinces that no further financial sacrifices will be demanded from them.

He was speaking during the budget debate for fiscal year 2026-27, days after the government froze provincial development allocations for three years to generate more than Rs900 billion for national security needs.

The decision, he said, was reached through constitutional means under Article 164, which permits financial grants between tiers of government for expenditures outside their traditional domains.

What did Bilawal say about the NFC award and the 18th Amendment?

Bilawal dismissed what he called strange rumours circulating before the budget debate about the possible abolishment of the 18th Amendment or unilateral changes to the NFC award.

He acknowledged that both achievements were historic and constitutional milestones, but added that no province had yet received its full due share despite them.

He praised Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb for maintaining a collaborative approach with the provinces throughout the budget process.

How have provinces contributed to the national defense burden?

Bilawal said Punjab generated a financial surplus of Rs700 billion last year and Rs900 billion this year by withholding local expenditures in areas including Multan and Dera Ghazi Khan.

He welcomed the PTI-led government in Khyber Pakhtunkhwa for setting aside political differences to contribute to the national defence burden.

He cautioned, however, that financial commitments made to the former Federally Administered Tribal Areas during their merger with KP have yet to be fully honoured.

Why did Bilawal defend BISP against its critics?

Bilawal called criticism of the Benazir Income Support Programme regrettable and shameful, describing it as a vital economic driver that generates bottom-up growth.

He said the IMF and the World Bank have praised BISP's effectiveness during crises such as the COVID-19 pandemic and major floods, and that neither institution is demanding cuts to the programme. He welcomed the prime minister's assurance that BISP funding will be expanded in the upcoming budget.

What did Bilawal say about regional peace and security threats?

Bilawal welcomed the recent US-Iran peace agreement and praised Pakistan's civil and military leadership for their diplomatic roles in facilitating regional stability.

He framed regional peace as a financial as well as a moral necessity, saying it directly drives foreign investment and youth employment.

He also warned that threats persist from instability along the Afghan border, Indian threats of an alleged Operation Sindoor 2.0, and New Delhi's challenges to the Indus Waters Treaty.

What did Bilawal say about Gilgit-Baltistan?

Closing his address, Bilawal thanked the people of Gilgit-Baltistan for their political trust, noting that the PPP had secured 11 seats in the region's recent elections.

He urged parliament to build a national consensus on granting Gilgit-Baltistan its long-delayed constitutional rights and proposed interim representation for the region in the federal parliament.

He described the people of Gilgit-Baltistan as among Pakistan's most patriotic, citing their historical role in liberating the region from the Dogra Raj.