The Pakistan Peoples Party (PPP) has voiced opposition to the International Monetary Fund’s (IMF) request for Pakistan to review the National Finance Commission (NFC) formula. The party questions why the IMF is pushing for changes that would affect the provincial share of resources. This objection comes shortly after the IMF suggested reopening discussions on the NFC award to address the distribution imbalance between federal and provincial governments. Senator Sherry Rehman, Vice President of the PPP, criticized the IMF’s involvement in Pakistan’s resource allocation formula, stating that there is no indication that the IMF should interfere in the constitutionally agreed framework. Instead of focusing on provincial shares, Rehman emphasized the need for the federal government to improve tax collection through the Federal Board of Revenue (FBR). She highlighted that provincial taxes have increased significantly while FBR taxes have remained stagnant. The current NFC formula, established in 2010, has led to fiscal imbalances and rising public debt. However, any changes to the formula would require constitutional amendments and unanimous agreement from all provinces, presenting a challenging task for the coalition government.
