First Time in History, Govt Cuts Rs. 35 Billion From Provinces

For the first time in Pakistan's history, the federal government has reduced the funds allocated to the four provinces by Rs. 35 billion. This unprecedented move came about after deducting the amount from their NFC shares, under Article 164 of the Constitution. The federal government collected Rs. 34.839 billion from the provinces as grants within the first two months of the current fiscal year.

This amount is recorded as non-tax revenue in the government's accounts. The provinces had previously agreed to contribute Rs. 1.035 trillion from their NFC shares during the fiscal year to assist the federal government in fulfilling its financial commitments under the IMF's $7 billion loan program. This latest deduction is a result of the financial support pledged by the provinces according to the agreement.