Bilawal says provinces will help Centre for two to three years, hopes no changes in NFC

PPP Chairman Bilawal Bhutto-Zardari while currently addressing the National Assembly, which is debating the proposed federal budget for the next fiscal year (FY27), has lauded the efforts of Pakistan’s leadership, particularly the prime minister and the army chief, in the peace agreement between the United States and Iran.

He paid tribute to the Field Marshal and the Prime Minister, adding that it has been proved that dialogue is more beautiful than confrontation. “Peace is not only a moral but also an economic necessity”, Bilawal said.

Bilawal said that when there is peace in the region, investment comes which brings propensity.  “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”.

Bilawal said a constitutional and democratic solution was found through political consensus. He hoped that no harm will be done to the NFC award and provinces will contribute their share for national defence despite the fact that provinces were also facing difficulties.

PPP chairman said that for two to three years, provinces will help the federation for defense. Bilawal Bhutto said the provincial governments have sacrificed time and again, and are still doing so today.

Bilawal called for an immediate end to ongoing protests and sit-ins across Azad Jammu and Kashmir (AJK), urging demonstrators to shift their demands into the political arena.He proposed a major overhaul of the territory’s “refugee seats” system, saying it had become a source of political controversy. He alleged that the quota system had previously been manipulated to benefit certain political actors.

The 12 refugee seats are voted on by Kashmiri refugees living in different parts of Pakistan and have long been criticised by some parties for influencing AJK’s internal political balance.

PPP leader suggested replacing the current arrangement with a proportional representation model, under which refugee seats would be allocated to political parties in line with their performance in the AJK Legislative Assembly.

He said constitutional and electoral matters could not be decided through street protests or pressure tactics, adding that such issues should be resolved through proper institutional forums. “Decisions regarding seats in AJK or any other province must happen at the proper constitutional forums,” he said.

Referring to ongoing strikes and civil unrest in AJK, Bilawal said continued agitation was harming governance in the region and urged protesters to end sit-ins. “How will Azad Kashmir function if there are protests every single day?” he said, adding that the government had already addressed several initial demands through dialogue.

He warned that those involved in unlawful activities should face legal action, while indicating that administrative measures could be reviewed if calm was restored. “Protesters must dismantle their camps unconditionally,” he said.

Bilawal said the PPP would fully contest upcoming AJK elections and aimed for a strong mandate, citing past performance in Gilgit-Baltistan. He also called for a broader national debate on enhancing constitutional and political rights for AJK residents pending a UN-sponsored plebiscite.

As a temporary measure, he suggested increased international advocacy and greater representation for Kashmiris in Pakistani political forums. 

Bilawal warned of emerging regional tensions following the Iran–US diplomatic developments, saying hostile elements could attempt to destabilise Pakistan and undermine the Kashmir cause.“The entire country is fully prepared to confront Modi’s conspiracies,” he said

Bilawal said the Khyber Pakhtunkhwa government has agreed to contribute for the national interest despite political differences. He appreciated the decision of the Khyber Pakhtunkhwa government. He said the federal government has assured that there will be no change in the NFC award.

Bilawal Bhutto said that targeting the Benazir Income Support Program is a shameful act. PPP chairman said that Benazir Income Support Program should be expanded to end the economic crisis.

PPP Chairperson said 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 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. “The provinces’ NFC award and financial resources have been kept protected; no damage will be caused to them,” he declared.

Bilawal said that the Centre and provinces had decided to jointly bear the burden of extraordinary needs pertaining to defence and national security.

He 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 that if the provinces and the federal government have to spend on a subject which does not fall under their domain, 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 and finding a constitutional and democratic solution.

“This is not just a financial or administrative [success], but the success of Pakistan’s politics. It is 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.

He further noted that there had been an impression that the provinces have fiscal space after the 18th Amendment and the NFC and that the federal government does not. He stressed that although the Centre may have economic challenges, so do all the provinces. “While it is true that the NFC and 18th Amendment were historic and constitutional achievements, it is also true that despite these, no province has been given its due share,” the Bhutto scion asserted.

Bilawal recalled that the petroleum development levy (PDL) had been temporarily introduced to help the country deal with the floods during the previous PPP government. Noting that it was still being collected, he contended that it was in violation of the NFC award and the 18th Amendment.

“Instead of distributing the petroleum levy among the Centre and the provinces under the NFC formula, the Centre retains 100 per cent of it,” he said. “That petroleum levy is being collected till today, and provinces are not getting their due share from petrol and gas levies. They are being deprived of their resources and their rights,” the PPP chairperson asserted. Bilawal went on to decry that provinces also gave another sacrifice to prevent the country from economic default. “Every provincial government is asked to show their surplus in their provincial budget, and that surplus means that we cannot spend that money on our people,” he said.

The PPP chairman remarked that the Sindh government’s Rs400 billion surplus this year could have been utilised for Karachi’s Lyari and Korangi areas or Larkana or Nawabshah if it did not have to be shown as surplus.

Bilawal went on to observe that Khyber Pakhtunkhwa had its own challenges, noting that despite the merger of the tribal districts, they were not accounted for in the NFC allocations. He asserted that both the provincial and federal governments had failed in fulfilling their promises of development in the tribal areas.

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. “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”.