ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday defended his government’s budget strategy, saying his administration had protected provincial resource rights through revenue-sharing arrangements and federal development spending, after opposition lawmakers criticized the impact of fiscal tightening on provinces.
Sharif’s remarks came after Opposition Leader Mahmood Khan Achakzai criticized the government’s decision to freeze provincial development allocations, warning that the move would affect health and social sector spending.
The exchange highlighted the challenge facing Islamabad as it seeks to maintain fiscal discipline under an International Monetary Fund (IMF) program while balancing development needs and rising security costs.
“The economic resources of the provinces are their right,” Sharif told parliament during a debate on the federal budget. “There is no contradiction in this.”
The prime minister rejected suggestions that the federation was neglecting smaller provinces and pointed to measures he said demonstrated the federal government’s commitment to equitable resource sharing and development across the country.
“You can take the example of Reko Diq,” he said, referring to the multibillion-dollar copper and gold mining project in southwestern Balochistan province.
“You can read the agreement of Reko Diq.”
“The shares of Reko Diq and the shares of the people of Balochistan are a shining example.”
Sharif also cited the 2010 National Finance Commission (NFC) Award, which increased provincial shares in the federal divisible pool, saying Balochistan’s allocation had doubled under the arrangement.
“In the 2010 NFC Award, the share of the people of Balochistan was increased by 100 percent,” he said.
The NFC Award determines how tax revenues collected by the federal government are distributed among Pakistan’s four provinces. The arrangement has long been a sensitive political issue, particularly in smaller provinces that have sought a greater share of national resources.
Sharif also highlighted federal spending in Balochistan, including support for agricultural solarization projects and the construction of the Gwadar-Chaman highway, which he said would cost more than Rs300 billion ($1.08 billion).
“As the Prime Minister of Pakistan, it is my responsibility to do what I can to the best of my ability, so that all four provinces can progress,” Sharif said.
He also defended security-related expenditures, citing persistent militant violence in Balochistan and Khyber Pakhtunkhwa and the sacrifices of Pakistani security personnel in counterterrorism operations.
“Terrorism is taking place every day,” Sharif said, arguing that measures taken to protect lives and strengthen security were necessary despite fiscal pressures.
Pakistan unveiled an Rs18.77 trillion ($67.5 billion) federal budget for fiscal year 2026-27 a day earlier, seeking to sustain economic stabilization and meet IMF-backed fiscal targets while reviving growth after years of economic turbulence.
The government has said the budget seeks to reduce the fiscal deficit and maintain reform commitments under Pakistan’s IMF program, requiring tighter expenditure controls despite demands for higher development spending.
Speaking before unveiling the budget on Friday, Sharif said his government had taken all provinces into confidence during the budget process and praised what he described as their positive response and “generosity” in supporting national fiscal objectives.
