{"id":3140,"date":"2026-06-10T06:57:43","date_gmt":"2026-06-10T06:57:43","guid":{"rendered":"https:\/\/paksouch.com\/?p=3140"},"modified":"2026-06-10T06:57:43","modified_gmt":"2026-06-10T06:57:43","slug":"provinces-agree-to-help-cover-federal-fiscal-deficit-mechanism-finalized","status":"publish","type":"post","link":"https:\/\/paksouch.com\/?p=3140","title":{"rendered":"Provinces Agree to Help Cover Federal Fiscal Deficit, Mechanism Finalized"},"content":{"rendered":"\n

ISLAMABAD:<\/strong> Pakistan\u2019s provinces have reportedly agreed to assist the federal government in addressing its fiscal deficit, with a mechanism for the transfer of financial resources also having been finalized during high-level consultations.<\/p>\n\n\n\n

The development emerged after a joint meeting of the government and the Pakistan Peoples Party (PPP) budget technical committee, where senior political and economic stakeholders discussed fiscal arrangements ahead of the federal budget.<\/p>\n\n\n\n

High-Level Meeting Held<\/h3>\n\n\n\n

According to sources, the meeting was attended by senior PPP leaders Senator Saleem Mandviwalla, Naveed Qamar, and Sherry Rehman<\/strong>.<\/p>\n\n\n\n

Deputy Prime Minister Ishaq Dar<\/strong>, Finance Minister Muhammad Aurangzeb<\/strong>, and senior officials of the Federal Board of Revenue (FBR)<\/strong> also participated in the discussions.<\/p>\n\n\n\n

The talks focused on ways to strengthen federal finances while maintaining coordination between the center and the provinces.<\/p>\n\n\n\n

Agreement on Fiscal Support<\/h3>\n\n\n\n

Sources familiar with the discussions said the provinces agreed in principle to help the federal government bridge its fiscal shortfall.<\/p>\n\n\n\n

A framework for providing the financial support was also reportedly worked out during the meeting, although detailed operational arrangements are expected to be finalized through further consultations.<\/p>\n\n\n\n

According to the sources, the federal government had requested approximately Rs1.7 trillion<\/strong> in support from the provinces.<\/p>\n\n\n\n

Punjab Ready to Contribute Significant Share<\/h3>\n\n\n\n

Officials indicated that Punjab<\/strong> had already expressed willingness to provide more than Rs500 billion<\/strong> in assistance to the federal government.<\/p>\n\n\n\n

The remaining amount is expected to be contributed collectively by the other provinces under the agreed formula.<\/p>\n\n\n\n

The arrangement is being viewed as part of broader efforts to improve fiscal stability and address budgetary pressures facing the federation.<\/p>\n\n\n\n

Consensus Reached Among Provinces<\/h3>\n\n\n\n

Speaking on the matter, Senator Saleem Mandviwalla<\/strong> said that key issues were resolved during a major meeting held at the Presidency.<\/p>\n\n\n\n

According to him, all four provinces agreed to provide between Rs1.2 trillion and Rs1.7 trillion<\/strong> to the federal government.<\/p>\n\n\n\n

He stated that the funds were required in view of Pakistan\u2019s strategic and national security-related challenges and that there was broad agreement on the need to support the federation.<\/p>\n\n\n\n

Debate Focused on Mechanism, Not Principle<\/h3>\n\n\n\n

Mandviwalla emphasized that there was no conflict between the federal government and the provinces over the issue.<\/p>\n\n\n\n

He explained that the primary discussion revolved around the mechanism through which the financial support would be provided rather than whether assistance should be given.<\/p>\n\n\n\n

\u201cThere was no dispute. The federal government made a request, and most of the discussion centered on the procedure for implementing it,\u201d he said.<\/p>\n\n\n\n

Reasons for Budget Delay<\/h3>\n\n\n\n

The PPP leader also addressed reports regarding delays in the budget process.<\/p>\n\n\n\n

According to him, scheduling difficulties caused by the Gilgit-Baltistan elections<\/strong> and the unavailability of key officeholders, including the President and Prime Minister, contributed to delays in consultations and decision-making.<\/p>\n\n\n\n

He added that meetings could not be held as planned, slowing progress on several budget-related matters.<\/p>\n\n\n\n

However, he noted that discussions regarding the development budget and other major issues have now been completed.<\/p>\n\n\n\n

Budget Timeline<\/h3>\n\n\n\n

The developments come ahead of a busy week for Pakistan\u2019s economic policymakers.<\/p>\n\n\n\n

The National Economic Council (NEC)<\/strong> is scheduled to meet today to review key economic and development plans.<\/p>\n\n\n\n

Meanwhile, the Federal Budget<\/strong> is expected to be presented on Friday<\/strong>, while the Economic Survey of Pakistan<\/strong> is likely to be released on Thursday<\/strong>, providing an overview of the country\u2019s economic performance during the outgoing fiscal year.<\/p>\n\n\n\n

The reported agreement between the federal government and the provinces could play a significant role in shaping the final budget framework and addressing fiscal challenges in the coming year.<\/p>\n","protected":false},"excerpt":{"rendered":"

ISLAMABAD: Pakistan\u2019s provinces have reportedly agreed to assist the federal government in addressing its fiscal deficit, with a mechanism for the transfer of financial resources..<\/p>\n","protected":false},"author":1,"featured_media":3141,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pakistan"],"featured_image_urls":{"full":["https:\/\/paksouch.com\/wp-content\/uploads\/2026\/06\/435668_9491501_updates-1.jpg",700,400,false],"thumbnail":["https:\/\/paksouch.com\/wp-content\/uploads\/2026\/06\/435668_9491501_updates-1-150x150.jpg",150,150,true],"medium":["https:\/\/paksouch.com\/wp-content\/uploads\/2026\/06\/435668_9491501_updates-1-300x171.jpg",300,171,true],"medium_large":["https:\/\/paksouch.com\/wp-content\/uploads\/2026\/06\/435668_9491501_updates-1.jpg",700,400,false],"large":["https:\/\/paksouch.com\/wp-content\/uploads\/2026\/06\/435668_9491501_updates-1.jpg",700,400,false],"1536x1536":["https:\/\/paksouch.com\/wp-content\/uploads\/2026\/06\/435668_9491501_updates-1.jpg",700,400,false],"2048x2048":["https:\/\/paksouch.com\/wp-content\/uploads\/2026\/06\/435668_9491501_updates-1.jpg",700,400,false]},"author_info":{"info":["admin"]},"category_info":"Pakistan<\/a>","tag_info":"Pakistan","comment_count":"0","_links":{"self":[{"href":"https:\/\/paksouch.com\/index.php?rest_route=\/wp\/v2\/posts\/3140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/paksouch.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/paksouch.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/paksouch.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/paksouch.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3140"}],"version-history":[{"count":1,"href":"https:\/\/paksouch.com\/index.php?rest_route=\/wp\/v2\/posts\/3140\/revisions"}],"predecessor-version":[{"id":3142,"href":"https:\/\/paksouch.com\/index.php?rest_route=\/wp\/v2\/posts\/3140\/revisions\/3142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/paksouch.com\/index.php?rest_route=\/wp\/v2\/media\/3141"}],"wp:attachment":[{"href":"https:\/\/paksouch.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/paksouch.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/paksouch.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}