Center committed to not ask for further 'sacrifices' after freeze on provinces' development funds: Bilawal

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.

The government has decided to freeze development allocations for the provinces for three years to generate more than Rs900 billion in additional resources for the Centre’s strategic needs.

Bilawal is currently addressing the National Assembly, which is debating the proposed federal budget for the next fiscal year (FY27).

“The provinces’ NFC award and financial resources have been kept protected; no damage will be caused to them,” he declared. “Besides this decision, the provincial governments will not be required to make any sacrifices,” he added.

Bilawal affirmed that “we came up with such a constitutional and democratic solution which meets the national security needs and also minimises complaints from the provinces”.

The PPP chairman emphasised that the decision was not taken unconstitutionally but rather under Article 164 of the Constitution.

“The constitution enables the provinces and the federal government that if they have to spend on a topic which does not fall under their domain — whether for the Centre or provinces — so under the article, provinces can give grants to the Centre or the Centre can give grants to the provinces,” he explained.

He thanked Prime Minister Shehbaz Sharif, Deputy PM Ishaq Dar and Finance Minister Muhammad Aurangzeb for remaining engaged with PPP representatives.

“This is not just a financial or administrative, but the success of Pakistan’s politics. It is the proof that when national interest is at stake, then democratic institutions, political parties, and all parts of the federation can make decisions together,” Bilawal said.

The PPP chairman also took note of “strange rumours” circulating before the budget was debated in the parliament, including the abolishment of the 18th Amendment and changes in the NFC award.

Bilawal began his speech by praising the efforts of Pakistan’s leadership, particularly the prime minister and the army chief, in the peace agreement between the United States and Iran.

“We have experienced the economic impact of uncertain situations. This is why Pakistan always promotes peace,” he said, terming peace “not just a moral necessity but also economic”.

“When there is stability in the region, investment increases. When there is peace, the youth get employment, and the country progresses,” he said.

“Today, when the world is inching towards peace, Pakistan will have to take a step towards development,” the PPP chairman stressed, adding that he would present his budget speech with the same “spirit”.

“The truth is that peace has not been restored completely in the region,” the former foreign minister said, before noting security challenges on the border with Afghanistan, the “threats of Operation Sindoor 2.0” from India and New Delhi’s unilateral contestation of the Indus Waters Treaty (IWT).

“I can say with pride that Pakistan has responded to the challenge with political unity and democratic tradition,” he added, declaring that the Centre and the provincial governments have decided to “collectively bear the burden of extraordinary necessities related to defence and national security”.

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