Centre decides to constitute new NFC
Listen to article
The federal government has decided to constitute the 11th National Finance Commission to finalise a new formula for distribution of resources, as the finance ministry disclosed on Tuesday that it spent Rs638 billion on subjects which, under the Constitution, are provincial matters.
The Rs638 billion spending in four provinces, Islamabad territory and special areas is exclusive of any development spending, indicating that a huge chunk of federal money is still pouring into provinces without any legal obligation.
For the first time, the Ministry of Finance made public a write-up covering current expenditures of the federal government on health, education and social protection subjects ahead of notifying the new commission.
The ministry said that these subjects stand devolved to the provinces with the enactment in April 2010 of the 18th Amendment. The amendment transferred several subjects from the federal legislative list to the provincial domain, effectively decentralising power and responsibility, and allowing provinces greater financial and legislative autonomy, it added.
The report revealed that the federal government spent a total of Rs638 billion in four provinces, special areas and Islamabad district in the last fiscal year on health, education and social protection. The amount was Rs36 billion higher than the preceding year, showed the report. The spending on the development projects were in addition to Rs638 billion, which the finance ministry did not disclose.
Meanwhile, during the April 28th meeting of the Council of Common Interests, the federal government informed the four provinces that it was in the process of establishing the 11th National Finance Commission to finalise the 8th award. It has already written letters to the provinces and sought their nominations for technical members.
Sindh has again nominated Dr Asad Sayeed as its technical member while the Sindh finance minister will be the other constitutionally-nominated member on the Commission. Under the Constitution, every government can have two representativesone finance minister and one technical member.
The commission is set up for a period of five year and the 10th Commission is going to meet its term on July 23rd without finalizing the 8th award. The last award was finalised in 2010, which expired in 2015. Since then, the President of Pakistan has been extending the last consensus award every year on an ad-hoc basis.
The Khyber Pakhtunkhwa government pressed the federal government in the CCI to call the meeting of the 10th commission and announce an interim award, said Muzammil Aslam, the K-P's Finance Adviser to the Chief Minister while talking to The Express Tribune.
He said that the K-P government has not yet nominated its technical member for the 11th Commission due to the reason that it wanted the meeting of the 10th Commission before the budget to get its due share on account of net hydel profit and merged districts.
The finance ministry report has revealed how the federal government has been spending in provinces in areas which under the constitution are provincial subjects.
Under the 7th award, the provinces get 57.5% of the resources and yet the federal government has been spending money in provinces despite scarcity of resources. The government and four provinces signed a weak National Fiscal Pact last year under the IMF guidelines, which does not have legal cover.
Social Protection
In the last fiscal year, the federal government spent Rs466 billion on social protection, including Rs350 billion that was spent in four provinces, according to the Finance Ministry.
The federal government disbursed Rs169 billion in Punjab under the BISP, Rs96 billion in Sindh, Rs67 billion in KP and Rs18 billion in Balochistan, according to the report. In addition to that it also 7.4 billion through Pakistan Bait-ul-Mal, an autonomous body contributing to poverty alleviation, said the Finance Ministry.
Health
In the health sector, Rs45 billion were spent in the last fiscal year on current programmes. These included Rs12 billion spent on employees, another Rs12 billion on operations and Rs21.3 billion on Expanded Programme on Immunization.
The Finance Ministry said that the Expanded Program on Immunization (EPI was running since 1978 to protect children against vaccine preventable diseases. However, the virus spread could not be controlled since then. Rs11.2 billion were spent in Punjab under the EPI, Rs5.1 billion in Sindh, Rs1.2 billion in KP and Rs3.5 billion in Balochistan.
Some of the health expenditures were related to Islamabad Capital Territory (ICT). An amount of Rs5.2 billion was spent on Pakistan Institute of Medical Sciences (PIMS) and Rs4 billion on the Federal Government Polyclinic (FGPC).
The expenditure of the Federal Government on health also covers the National Institutes of Health (NIH), an institution involved in multi-disciplinary public health related activities like diagnostic services, research and production of vaccines as well as the National Institute of Rehabilitation Medicine (NIRM) which serves people with special abilities
Budgetary allocation is also made for the Federal Government run Shaikh Zayed Hospital, Lahore, a hospital gifted for the people of Pakistan in 1973 by the then president of the UAE, Shaikh Zayed bin Sultan Al-Nahyan. The federal government spent Rs4.9 billion on Shaikh Zayed hospital.
The funds were also allocated for the administrative costs of the Ministry of National Health Services, Regulations and Coordination. The actual expenditure of the ministry was Rs3.7 billion in the last fiscal year.
Education
The Finance Ministry stated that Rs114 billion were spent on education in the last fiscal year, majority of it in the provinces.
The largest chunk of the federal government expenditure on the subject of education is earmarked for higher education and is disbursed to the Higher Education Commission (HEC) in the form of grants.
An analysis of this expenditure highlights that in fiscal year 2023-24 around 16% of funds were disbursed by HEC to universities and institutes in ICT, AJK and Gilgit Baltistan while the remaining funds were allocated for universities in provinces, said the Finance Ministry.
Punjab related federal education spending amounted to Rs31 billion, in Sindh it was Rs15 billion, Rs11.6 billion was spent in KP and Rs3.7 billion on education in Balochistan.
The Finance Ministry said that the funds were also kept for the Action to Strengthen Performance for Inclusive and Responsive Education (ASPIRE) Program of the World Bank and Rs8.6 billion was spent under this head in the last fiscal year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
3 hours ago
- Business Recorder
K-Electric's EPIC 2025 event brings a different kind of ‘energy' to Habib University
The grand finale of K-Electric's (KE) Energy Progress and Innovation Challenge (EPIC) 2025 was held at Habib University on Wednesday. A team from National University of Science and Technology (NUST) that presented a project on tamper-proof PMT-based loadshedding and transformer control was declared the winner, walking away with prize money of Rs1.5 million. EPIC 2025 provided a platform for entrepreneurs, startups, researchers, and academia to develop localised, home-grown solutions that addressed ten 'challenge statements', including 'Real-time fleet tracking and visibility for power utilities', 'Smart monitoring of transmission lines: enhancing grid reliability' and 'Open innovation: driving transformation in the power sector'. Launched in March 2025, the initiative attracted over 250 applications from all over the country. After an internal jury assessment comprising functional heads, 10 projects were shortlisted to compete at the grand finale, featuring solutions ranging from AI-driven demand forecasting to IoT-based fleet management and smart theft detection to an esteemed external panel of jury members, according to a press release issued by the company. The winning NUST team claimed their plug-and-play solution allows them to switch off a PMT remotely, which could greatly reduce the impact of loadshedding to a lower number of customers. The second winner's project, presented by a group from Govt College University Faisalabad, was on demand forecasting automation using an artificial neural network, crucial for grid stability and plant efficiency perspectives. The third winner, from NED University, presented a project called optimized AI model for accurate electricity demand forecast. The runner-up was awarded Rs1 million while the second runner-up was awarded Rs750,000. But it was the solutions and spirit with which they were presented that was invaluable. Other presentations dealt with a variety of themes: curbing electricity theft, improving recovery rates, battery energy storage utilization, pre-emptive transformer level failure detection, and photovoltaic impact analysis. Imagine if a transformer breakdown is detected beforehand. Now imagine loadshedding based on PMTs – technologically not possible at the moment. These are practical questions Pakistan's power sector is asking and their answers were the core discussion points at EPIC 2025. Moonis Alvi, CEO at KE, said he was excited about the potential prospect of utilising the solutions. 'Law-breakers are sometimes smarter than lawmakers. It is my hope that these ideas can help Pakistan's power sector and are scalable. I am looking forward to engaging with the finalists. But this is a continuous process. The engagement needs to continue.' During her address to the audience, Sadia Dada, Chief Distributions and Marcomms Officer, made it clear that any solution would not go through a process of limiting it to KE. 'These solutions will be for the entire power sector in the country.' Speaking to Business Recorder on the sidelines of the event, Dada said the challenges facing Pakistan's power sector, especially on the distribution side, are very unique to our geography. 'It is difficult to find solutions off the shelf. So we want those that are localised and homegrown. This ties in with our localisation agenda. 'Because the people developing these solutions understand the context, most of the finalists are from Karachi. Some of them are from Faisalabad, Islamabad, and Lahore. Having this intellectual capital in the country and not utilise is also a wasted opportunity. I am excited at taking these solutions and implementing them in the KE business model. Talking about loadshedding, Dada said KE cannot provide free electricity to customers who do not pay. 'But there are pockets where there are paying customers. If we can bring down the circumference of the impact of loadshed to a PMT level, that would be a win-win, and one of our finalists has worked on this solution.'
Express Tribune
4 hours ago
- Express Tribune
'Exceptional partner': US general lauds Pakistan's counterterrorism efforts
Listen to article United States Central Command (Centcom) Chief General Michael Kurilla has lauded Pakistan's counterterrorism efforts, particularly its role in combating the militant group ISIS-Khorasan (ISIS-K), describing the country as a key partner in regional security operations. Speaking during a hearing of the House Armed Services Committee in Washington on Tuesday, Kurilla described ISIS-K as 'one of the most active groups attempting external plots globally, including against the US homeland.' He added that hostility between the Taliban and ISIS-K had intensified, forcing many fighters into the tribal regions along the Afghan-Pakistan border. The Centcom chief praised Pakistan's cooperation, terming it a 'phenomenal partnership.' He said that with limited intelligence support from the United States, Pakistan had managed to kill dozens of ISIS-K militants and capture at least five high-value individuals. Among those apprehended was Jafar, identified as a key figure behind the 2021 Abbey Gate bombing at Kabul airport. 'The Chief of Army Staff called me directly and said, 'I've caught him. I'm willing to extradite him back to the United States. Please inform the Secretary of Defense and the President,'' Kurilla told the committee. While acknowledging Pakistan's successes, the general noted that ISIS-K remains operational in the region. 'They are mostly confined to the border areas of Pakistan, occasionally attempting to re-enter Afghanistan,' he said, adding that the United States continues to monitor the group's movements. Earlier this year, US president Donald Trump also acknowledged Pakistan's role in counterterrorism. Speaking before a joint session of Congress in March, he said: 'I want to thank, especially, the Pakistani government for helping arrest this monster,' referring to Jafar's capture. Highlighting Pakistan's own internal security challenges, Kurilla told lawmakers that the country has faced over 1,000 terrorist attacks in its western regions since the beginning of 2024, resulting in approximately 700 deaths and 200 injuries. He referred to Pakistan as an 'exceptional partner' in counterterrorism efforts. Commenting on the current strength of ISIS-K, the Centcom chief said the group is at a 'low point' following several months of sustained pressure. He said intelligence gathered from interrogations has provided 'substantial' information. However, he cautioned that the threat remains, citing the group's involvement in recent international attacks, including the Crocus City Hall bombing in Moscow and another in Kerman, Iran. 'Whatever we have to do to avoid going back to that place would be critical,' he warned. Kurilla also stressed the importance of maintaining strategic ties with both Pakistan and India. 'We have to have relationships with Pakistan and with India. I don't believe it's a binary switch that we can't have one with Pakistan if we have one with India. We should look at the merits of the relationship for the positives that it has,' he said. WATCH: Trump Thanks Pakistan Government for Helping Capture Top ISIS Terrorist The remarks come in the backdrop of a broader shift in US policy towards the region. Following a military standoff between India and Pakistan that brought the two nuclear-armed neighbours close to war, Trump announced a ceasefire on May 10. Since then, Trump has repeatedly taken credit for defusing tensions while commending Pakistan's leadership for its role. In a notable policy reversal, the Trump administration recently approved $397 million for the maintenance of Pakistan's F-16 fighter jet fleet. The allocation follows a freeze on foreign aid and is designated strictly for counterterrorism operations. A US-monitored oversight mechanism will ensure the aircraft are not used against India, according to a Reuters report. Despite an executive order halting most overseas funding, Washington has granted approximately $5.3 billion in security-related exemptions—with Pakistan's allocation among 243 such cases.
Business Recorder
6 hours ago
- Business Recorder
Pakistan an ‘exceptional counterterrorism partner': US CENTCOM chief
Pakistan has emerged as an exceptional partner in the global fight against terrorism, said General Michael Erik Kurilla, head of the United States Central Command (CENTCOM), during a testimony before the US Senate Armed Services Committee on Wednesday. General Kurilla acknowledged Pakistan's active and positive role in counterterrorism operations, stating that the international community recognizes its contributions to regional and global security. 'ISIS-K remains one of the most active terrorist groups globally, and Pakistan has stood out as a crucial counterterrorism ally,' he told the committee. The CENTCOM commander noted that close intelligence cooperation between the United States and Pakistan led to the elimination and capture of dozens of ISIS-K operatives, including at least five top-tier leaders. Trump willing to mediate Kashmir dispute after India-Pakistan ceasefire He highlighted the capture and extradition of Jaafar, the mastermind behind the 2021 Abbey Gate bombing, as a major success enabled by Pakistani intelligence. 'Following Jaafar's arrest, Pakistan's Chief of Army Staff, Field Marshal Asim Munir, personally informed us, reflecting the depth of our cooperation,' said Kurilla. He added that Pakistan continues to target ISIS-K through limited but effective intelligence sharing. General Kurilla said that ISIS-K remains active along the Pakistan-Afghanistan border, but the group's operational strength appears to be weakening due to recent losses. 'Since early 2024, over 1,000 terrorist attacks have occurred in Pakistan's western regions, claiming around 700 lives and injuring 2,500. Pakistan is actively engaged in combating terrorism,' he noted. Kurilla also emphasized the importance of maintaining balanced US relations with both Pakistan and India. 'I don't see this as an either-or scenario. We must engage with both countries to ensure regional stability,' he said.
