Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari on Friday said Pakistan was facing multiple internal and external challenges but rejected any move to reduce the provinces' share under the National Finance Commission (NFC) Award, arguing that national security needs should be met through constitutional and consensual mechanisms.
Addressing a meeting of the PPP parliamentary party ahead of the federal budget presentation, Bilawal said the budget was being presented at a time when Pakistan was confronting significant geopolitical and security challenges.
Referring to recent tensions with India, he claimed Pakistan had emerged victorious and alleged that India was attempting to weaken the country through various means.
"India is not tolerating this defeat. Efforts are being made to create problems for Pakistan and generate instability," he said.
Bilawal alleged that Pakistan was facing security threats on its borders and terrorism challenges due to what he described as a nexus between India and Afghanistan.
"From Balochistan to Khyber Pakhtunkhwa, we are confronting these challenges," he said, adding that the rapidly changing geopolitical environment required strategic decision-making.
The PPP chairman also warned about growing international tensions, saying the world continued to wait for peace amid fears of wider conflict.
"We pray that a third world war does not break out. This situation must also be kept in mind while making strategic decisions," he said.
Opposes reduction in provincial share
Bilawal criticized proposals that sought to address national security expenditures by reducing the provincial share in the NFC Award or altering the 18th Constitutional Amendment.
He said discussions on meeting additional national security requirements had often revolved around constitutional amendments or extraordinary measures, but political parties had succeeded in finding a constitutional solution.
"I believe that for the needs of national security, all political parties have collectively found a solution through constitutional means," he said.
According to Bilawal, the provinces and the federation reached an understanding under which provinces would contribute to national security requirements without reducing their constitutional share in the NFC Award.
He said the arrangement would remain in place for three years and was based on the existing NFC-7 formula.
"As long as we are fulfilling these requirements, the NFC Award will not be touched," he said.
Bilawal described the agreement as a victory for politics, parliament and federalism, saying Sindh and Balochistan had reached a difficult but constitutional understanding with the federal government.
He thanked PPP leaders including Naveed Qamar, Sherry Rehman, Murad Ali Shah and Jam Khan Shoro for their role in negotiations, and also acknowledged Deputy Prime Minister Ishaq Dar for helping reach the agreement.
"This is a great achievement for the PPP, the government and all of us. We are trying to fulfill the country's national needs together through a political process," he said.
Calls for FBR reforms
Bilawal criticized the performance of the Federal Board of Revenue (FBR), arguing that revenue generation remained inadequate.
He claimed provincial revenue authorities had shown better performance and suggested that the country's tax collection system required major reforms.
"The government is not working effectively on revenue generation," he said, adding that strengthening provincial revenue boards should be considered as part of broader fiscal reforms.
The PPP chairman said increasing revenue collection through reforms and better governance was a more sustainable solution than reducing provincial financial rights.
Raises concerns over Kashmir situation
Bilawal also expressed concern over the political and security situation in Azad Jammu and Kashmir, calling it deeply troubling.
He alleged that anti-Pakistan forces were attempting to exploit instability in various regions, including Kashmir, Balochistan and Afghanistan.
He emphasized that governments had a responsibility to uphold the writ of the state and could not allow anyone to take the law into their own hands.
"The PPP has always believed in finding political solutions to political problems and will continue to pursue that approach," he said.
The PPP chairman devoted a significant portion of his speech to developments in Azad Jammu and Kashmir (AJK), claiming his party had been denied the opportunity to form governments despite electoral strength.
He alleged that political engineering during previous administrations had prevented the PPP from exercising its democratic mandate in AJK and Gilgit-Baltistan.
Bilawal said the PPP had consistently advocated constitutional politics and consultation, arguing that political parties should be given space to address public grievances.
"When political parties are not given space, non-political actors fill that vacuum," he said.
Calls for constitutional, collective solutions
Concluding his address, Bilawal said Pakistan had entered a period where strategic decision-making was essential for national security and governance.
He argued that old approaches, including attempts to weaken institutions or reduce provincial rights, would not provide lasting solutions.
"The real way forward is for all political parties, the federation and the provinces to sit together and find constitutional and consultative solutions," he said.
Bilawal called for reforms of all revenue institutions, including the FBR, strengthening of provincial revenue boards and a fair distribution of resources to meet both national security requirements and development needs.