| Constitutional/Federalism | "NFC is a Right, Not a Grant": Balochistan Warns Against 'Performance-Based' Rollback | President of the Balochistan Economic Forum BEF Sardar Shoukat Popalzai
Chehra WebDesk
NFC: Balochistan Says 'No' to Conditional Transfers, Calls for Federal Reform
QUETTA: Sardar Shoukat Popalzai, President of the Balochistan Economic Forum (BEF), has issued a forceful statement clarifying Balochistan’s non-negotiable stance on the National Finance Commission (NFC) Award, asserting that the transfers are a "constitutional division of resources" and not a "grant" from the Federal government.
The statement argues that any proposal to dilute provincial shares or tie them to 'performance-based' conditions is seen as an attempt to penalise the province for structural federal failures and revive historical grievances of resource appropriation.
The Constitutional Lifeline
Popalzai stressed that the NFC is Balochistan's only mechanism for fiscal justice, partially compensating for decades of underdevelopment despite the province contributing vast natural wealth—including gas, minerals, and a strategic coastline—to the federation.
"When the Federal government or commentators propose rethinking the NFC with ‘performance-based’ conditions, Balochistan perceives this as an attempt to dilute the only fiscal mechanism that partially compensates for historical neglect," the statement reads. A Relationship of Equals
The BEF President firmly rejected the notion of federal oversight or control over provincial spending, stating that the relationship between the Federation and the provinces must be one of equals.
"Any suggestion that the federal government should ‘monitor’ or ‘control’ provincial spending revives fears of past centralisation, which contributed to political alienation and even insurgencies," Popalzai noted. Constitutional safeguards, like Article 160 and the 18th Amendment, are viewed as essential against the erosion of provincial autonomy.
Accountability is a Two-Way Street
The statement shifted the accountability debate back to the centre, arguing that provinces can equally question federal performance. It pointed to significant federal failures that have crowded out development financing for Balochistan, including:
Billions wasted on un-restructured State-Owned Enterprises (SOEs) like PIA and Pakistan Steel.
Chronically low tax-to-GDP ratio leading to over-borrowing and austerity that disproportionately affects Balochistan’s development.
Weak performance in border trade regulation, enabling smuggling that damages the province's formal economy.
While acknowledging the need for provincial introspection on weak governance and failure to mobilise local revenues, the BEF maintained that these shortcomings are a call for capacity-building, not justification to reduce constitutionally mandated NFC allocations.
The Real Issue: Tax Reform, Not NFC Revision
Popalzai concluded that Pakistan’s fiscal crisis is a federal structural problem, not a provincial one, and is caused by inefficiency, a narrow tax base, and unproductive SOEs.
The solution, he argued, is genuine tax reform at the federal level, not "weakening the Federation by shrinking autonomous provincial space."
Way Forward for Balochistan
The province must advocate for:
Protection of NFC shares under Article 160(3A).
Recognition of revenue-generating rights in key sectors like minerals, fisheries, Gwadar port activities, and border trade.
A new conversation on local value addition, fair royalty calculations, and provincial roles in setting development priorities.
Strengthening provincial governance through better planning, professionalised departments, and transparent, district-level development models.
