Finance Minister Muhammad Aurangzeb confirmed that the provincial share under the National Finance Commission Award will remain unchanged in Budget 2026-27.
The announcement was made during the federal budget presentation for fiscal year 2026-27, which proceeded amid significant disruption from opposition members inside the National Assembly.
Substantial allocations have been made for the newly merged districts of Khyber-Pakhtunkhwa, Gilgit-Baltistan, and Azad Jammu and Kashmir under both current expenditure and development programme heads.
Azad Jammu and Kashmir has been allocated Rs146 million in current expenditures, while Gilgit-Baltistan has received Rs88 million under the same budgetary head for the fiscal year.
Rs95 million has been earmarked specifically for the newly merged districts of Khyber-Pakhtunkhwa under the Public Sector Development Programme, targeting governance and development needs in those regions.
A total of Rs144.9 million has been set aside for less developed areas across the country, reflecting the government’s stated commitment to reducing regional economic and developmental disparities.
Under the PSDP, Rs13 million has been allocated for governance-related initiatives, including Rs146 million designated specifically for digital governance projects across federal and provincial jurisdictions.
The NFC Award governs the distribution of federal tax revenues between the federal government and Pakistan’s 4 provinces, forming a critical pillar of the country’s fiscal federalism framework.
Finance Minister Aurangzeb said the government’s third consecutive budget reflects continued efforts toward economic stabilisation, reform implementation, and equitable distribution of national resources across all regions.
Pakistan’s total federal expenditure for FY2026-27 has been estimated at Rs18,771 million, with current expenditure standing at Rs17.4 trillion, including Rs8,054 million for mark-up payments.
The finance minister also noted that Pakistan and Saudi Arabia had reached a defence agreement, describing it as a strategic partnership with implications for regional security and bilateral cooperation.
