Islamabad (Commerce Desk): A significant development has emerged in financial matters as provinces have agreed to provide an additional financial share to the federal government under the National Finance Commission (NFC) framework.
According to sources in the Ministry of Finance, Punjab and Sindh will contribute additional funds to the federal government in line with increased tax targets for the upcoming fiscal year, while no changes will be made to the core NFC distribution formula.
Sources said that these additional funds will be used for strategic expenditures, while the federal government plans to return these grants to the provinces in the coming years.
It is also reported that a significant increase in the tax target is expected for the next fiscal year, under which substantial financial support from Punjab and Sindh is anticipated.
Officials stated that discussions in this regard were successfully completed under the chairmanship of the Deputy Prime Minister and Foreign Minister between the technical committee and relevant political parties, finalizing the financial framework.
Authorities said the development aims to improve financial cooperation between the federation and provinces and strengthen national fiscal management.