Pakistan’s economy at risk as IMF demands NFC award revision. Officials have hinted that Pakistan plans to revise the NFC award to meet IMF requirements, sparking concerns over how the new arrangement could impact provinces and national development priorities.
According to sources, discussions are underway at the federal level to amend the National Finance Commission (NFC) award. The government believes this revision is essential to comply with IMF conditions tied to the ongoing bailout program. Policymakers argue that without addressing fiscal imbalances, Pakistan’s economy could face further strain.
NFC award and IMF conditions
The Pakistan NFC award has long been a subject of debate between federal and provincial governments. The IMF has repeatedly emphasized that Pakistan must generate more revenue and curb leakages to sustain its economic reforms. Analysts say that revising the NFC award may help the government retain more resources at the center, but provinces worry about reduced development funds.
A government insider revealed that the proposal includes revising the formula for provincial shares. While officials insist that dialogue with stakeholders will take place, provincial representatives are already voicing concern. Many argue that cutting provincial budgets will affect health, education, and infrastructure projects.
Pakistan NFC award and corruption concerns
The IMF has also pressed Pakistan to strengthen its governance framework. In its recent talks, the fund highlighted corruption and revenue leakages as key obstacles to economic stability. Reports suggest that international lenders want Islamabad to implement stricter monitoring systems. In this context, the revision of the Pakistan NFC award is seen as part of a broader reform agenda.
Experts say that the move may ease relations with the IMF but could also trigger political backlash at home. Opposition leaders are expected to challenge the decision, calling it an attempt to centralize power. Civil society groups also caution that reforms must not come at the cost of provincial autonomy.
For now, the government is weighing its options, but the urgency is clear. The IMF has urged Pakistan to curb corruption and ensure accountability, signaling that compliance with these conditions is non-negotiable.
What lies ahead
Observers believe that revising the Pakistan NFC award will test both federal leadership and provincial cooperation. If managed carefully, it could help stabilize the economy and secure IMF support. If mishandled, however, it risks sparking fresh political tensions and slowing progress on key reforms.
