ISLAMABAD (MNN); Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari has said that the federal government has assured provinces that their shares under the Seventh National Finance Commission (NFC) Award will remain fully protected despite the recent decision to freeze provincial development allocations for three years.
Speaking during the National Assembly’s budget debate on Thursday, Bilawal stated that no further sacrifices would be sought from provincial governments beyond the agreed arrangement aimed at addressing extraordinary defence and national security requirements.
He explained that the Centre and provinces had jointly agreed to shoulder the burden of emerging security challenges through a constitutional and democratic framework. According to Bilawal, the mechanism was developed under Article 164 of the Constitution, allowing provinces and the federal government to provide grants to one another for matters beyond their direct jurisdiction.
The PPP chairman praised Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb for engaging with his party and reaching what he described as a constitutional solution in the national interest.
Bilawal termed the agreement a success for Pakistan’s democratic system, saying political parties and institutions had demonstrated unity at a time of growing regional security threats, including terrorism, tensions with Afghanistan and what he called the “India-Israel nexus”.
He also welcomed the cooperation of the opposition PTI and noted that Khyber Pakhtunkhwa, governed by PTI, had joined the consensus despite political differences.
However, Bilawal stressed that such temporary financial arrangements were not sustainable and urged both federal and provincial governments to formulate long-term economic strategies focused on growth and development.
Addressing concerns raised before the budget, he dismissed speculation regarding the abolition of the 18th Constitutional Amendment and changes to the NFC Award. He argued that although the NFC framework and the 18th Amendment were historic achievements, provinces still had not received their full financial rights.
The PPP leader criticised the continued collection of the Petroleum Development Levy (PDL), claiming that provinces were being denied their rightful share of revenues generated from petroleum and gas levies. He also highlighted the burden placed on provinces to generate budget surpluses to support the federal government’s commitments under the IMF programme.
Bilawal said that Sindh’s budget surplus could have otherwise been invested in development projects across Karachi, Larkana and Nawabshah. He added that provinces were making significant sacrifices to support economic stability and prevent financial crises.
Discussing Khyber Pakhtunkhwa, he noted that merged tribal districts were still not adequately reflected in NFC allocations and regretted the failure to extend tax exemptions for tribal areas in the proposed budget.
At the beginning of his speech, Bilawal welcomed the recent peace agreement between the United States and Iran and praised Pakistan’s diplomatic role in facilitating the accord. He said regional peace was essential for economic growth, investment and job creation.
Turning to the situation in Azad Jammu and Kashmir (AJK), Bilawal urged protesters to pursue their demands through democratic institutions rather than street agitation. He reiterated support for dialogue and warned against extremist politics and violence.
He strongly opposed demands to abolish reserved assembly seats for refugees from Indian Illegally Occupied Jammu and Kashmir, insisting that refugee representation could not be compromised. He called for a consensus-based solution that respected both democratic principles and Kashmiri rights.
Bilawal also highlighted the constitutional status of Gilgit-Baltistan, questioning why its people were still denied full representation in Parliament despite their longstanding loyalty to Pakistan. He urged lawmakers to consider granting the region interim parliamentary participation until a final constitutional settlement is achieved.
The PPP chairman further defended the Benazir Income Support Programme (BISP), describing it as an effective poverty alleviation initiative recognised internationally. He argued that the programme was not only a social welfare measure but also contributed to economic activity, social stability and national security.
Concluding his speech, Bilawal called for growth-oriented policies that prioritise underdeveloped regions and lower-income groups. He said Pakistan’s economy could not achieve sustainable progress unless ordinary citizens also benefited from development and prosperity.