President OKs NFC Change Criminal Laws Bill Amid IMF Pressure
President Approves New NFC Member, Criminal Laws Bill Amid IMF-Linked Reforms
ISLAMABAD – The President of Pakistan has approved the nomination of Mahfooz Ali Khan as Balochistan’s non-official member in the 11th National Finance Commission (NFC), replacing the earlier nomination after a revision by the provincial government.
According to a statement from the President’s Secretariat, the decision came following Balochistan’s recommendation, which was formally endorsed by the president.
In a separate development, the president also gave his assent to the Criminal Laws (Amendment) Bill, 2025, recently passed by Parliament.
Meanwhile, Pakistan is preparing for potential changes to the NFC Award under pressure from the International Monetary Fund (IMF). Sources said that the government is considering revising the revenue-sharing formula to reduce the federal deficit and manage growing debt.
Currently, provinces receive 57.5 percent of funds from the divisible pool, but officials suggest this share could be reduced. If consensus is not reached, the federal government may resort to the 27th Constitutional Amendment to enforce the changes.
The proposed formula could also revise the population-based share, which stands at 82 percent, by adding new factors such as poverty levels, tax performance, and population density. Provinces may also be required to generate more of their own revenue rather than relying heavily on federal transfers.
Additionally, Islamabad is considering shifting the Benazir Income Support Programme (BISP) and the Annual Development Plan (ADP) to provincial control. These reforms are part of the IMF’s conditions aimed at cutting federal spending and creating fiscal space for economic stability.
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