Karachi (Commerce Desk) – Former finance minister Miftah Ismail has proposed reforms in the provincial financial system, suggesting that provinces should provide a 1,000 billion rupee grant to the federal government.
Speaking in a television program, he said that all provinces should receive their financial share in a fair and transparent manner, and that in the upcoming fiscal year the four provinces should collectively generate a surplus of around 1,800 billion rupees.
He suggested that out of this surplus, 1,000 billion rupees should be given to the federal government as a grant to help reduce the federal fiscal deficit.
Miftah Ismail noted that provinces also generated a combined surplus of around 1,700 billion rupees last year, while the federal government continued to face a significant deficit.
He further said that since a large portion of federal revenue is transferred to provinces, a new financial framework is needed to ensure better fiscal balance.