Strong Provinces Are Foundation of Strong Federation Sukhdev Hemnani

Sindh government spokesperson Sukhdev Hemnani has said strong provinces are essential for a strong federation.

He said Pakistan’s federal system depends on cooperation between the Centre and provinces. He also stressed fair resource sharing, constitutional rights and respect for democratic mandates.

Sindh Stresses Provincial Role

“The stronger the provinces, the stronger the federation,” Hemnani said.

He said empowered provinces can deliver public services and respond to emergencies. They can also support national requirements.

Hemnani said Sindh has shown this commitment through financial support for national priorities. He added that the province faces pressures on its own resources.

Sindh Raises NFC Share Issue

Hemnani said debates on federal finances must consider the actual structure of the NFC system.

He said provinces collectively receive 57.5% of the relevant NFC divisible pool. However, he stressed that this does not mean 57.5% of all federal revenue.

According to Hemnani, Sindh receives 24.55% of the ordinary provincial pool. He said this equals about 14% of the overall net divisible pool before separate grants and straight transfers.

“These resources finance constitutional responsibilities and essential public services,” he said.

He added that significant federal non-tax revenues remain outside the NFC sharing arrangement.

Revenue Shortfall Affects Provinces

Hemnani said provincial budgets rely on federal revenue projections. Actual transfers, however, depend on federal tax collections.

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The federal government set the FBR tax target at Rs14.131 trillion for FY2025–26. The FBR later collected about Rs13 trillion in net taxes. Official data shows the original target stood at Rs14.131 trillion, while the revised target fell to about Rs12.983 trillion.

Hemnani said Sindh’s federal tax share and straight transfers also changed during the fiscal year.

He said the provincial estimate fell from about Rs2.044 trillion to Rs1.879 trillion. This reduced Sindh’s expected resources by nearly Rs165 billion.

“Federal collection shortfalls directly affect provincial development and public-service commitments,” Hemnani said.

Sindh Commits Funds to National Priorities

Despite financial pressures, Hemnani said Sindh allocated about Rs260 billion from its own share under Article 164.

He said the allocation supports national strategic requirements during FY2026–27.

At the same time, he said Sindh reduced its overall development portfolio. The portfolio fell from about Rs1.018 trillion to Rs720 billion.

Petroleum Levy Debate

Hemnani also referred to the federal petroleum levy.

He said the federal government budgeted about Rs1.677 trillion from the levy for FY2026–27.

“The public pays the petroleum levy through fuel bills,” he said. “However, the federation retains these proceeds as non-tax revenue outside NFC sharing.”

He argued that discussions about provincial shares should also consider federal revenues that remain outside the NFC framework.

Call for Stronger Federalism

Hemnani said debates over Pakistan’s federal structure should promote national cohesion.

He said such discussions should not create mistrust between the Centre and provinces.

“The federation cannot be strengthened by weakening its provinces,” he said.

Hemnani added that provincial autonomy and democratic mandates should remain part of the federal framework.

He said stronger trust between the Centre and provinces would help reinforce Pakistan’s federation.