Sindh government spokesperson Sukhdev Hemnani has called for stronger cooperation between the federation and provinces.

He said Pakistan’s federal structure depends on equitable resource-sharing, constitutional rights and respect for the democratic will of the people.

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

He said empowered provinces can provide public services, respond to emergencies and support national requirements.

Hemnani said Sindh had also provided significant financial support for national needs despite facing pressure on its own resources.

Sindh Explains Its NFC Share

Hemnani said discussions about federal finances should distinguish between the 57.5 per cent provincial share of the NFC divisible pool and the federal government’s overall revenue.

Under the 7th NFC Award, provinces collectively receive 57.5 per cent of the divisible pool. Sindh’s horizontal share stands at 24.55 per cent.

Hemnani said Sindh’s share amounts to about 14 per cent of the overall net divisible pool before separate grants and straight transfers.

He argued that the distinction matters when assessing the distribution of federal and provincial resources.

“These resources finance constitutional responsibilities and essential public services, while substantial federal non-tax revenues remain outside the NFC sharing arrangement,” he said.

Sindh Points to Federal Revenue Shortfall

Hemnani said provincial budgets rely partly on federal revenue projections.

He said actual transfers can change when federal tax collections fall below expectations.

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For FY2025-26, he cited an original FBR target of Rs14.131 trillion and reported year-end net collection of about Rs13 trillion.

He said the resulting shortfall affected Sindh’s expected federal transfers.

According to Hemnani, Sindh’s federal tax share and straight transfers were revised from about Rs2.044 trillion to Rs1.879 trillion.

That reduced the province’s expected resources by nearly Rs165 billion, he said.

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

The latest fiscal data also show that FBR collection for FY2025-26 was below earlier projections, although the exact comparison depends on the target used. Business Recorder reported net collection of about Rs12.957 trillion for the year.

Sindh Highlights Rs260bn Article 164 Commitment

Hemnani said Sindh committed about Rs260 billion from its own share under Article 164 for national strategic requirements during FY2026-27.

The province’s development budget stands at about Rs720 billion, down from roughly Rs1.018 trillion in the previous fiscal year.

Hemnani linked the financial pressure to Sindh’s wider development priorities.

The Rs260 billion allocation has also featured in recent discussions over Pakistan’s fiscal federalism. Business Recorder reported that the federal government estimated grants and receipts from provinces under Article 164 at Rs1.035 trillion for FY2026-27.

Petroleum Levy Remains Outside NFC Pool

Hemnani also highlighted the federal government’s petroleum levy.

He said the federal budget set a petroleum levy target of about Rs1.677 trillion for FY2026-27.

He argued that consumers across Pakistan pay the levy through fuel purchases, while the proceeds remain federal non-tax revenue outside the NFC sharing arrangement.

“Any claim that provinces receive an excessive share must acknowledge these substantial federal-only revenues,” he said.

Sindh Calls for Stronger Federalism

Hemnani said debates over Pakistan’s federal structure should focus on constitutional federalism and national cohesion.

He warned against measures that, in his view, could weaken provincial autonomy or reduce trust between the federation and provinces.

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

Hemnani said cooperation between the Centre and provinces would help strengthen national institutions and improve public service delivery.