High-level committee to assess recommendations on federal-provincial financial relations and governance reforms
Prime Minister Shehbaz Sharif has reaffirmed Pakistan’s commitment to economic reforms and directed the formation of a high-level committee to evaluate the World Bank Fiscal Federalism Report, aimed at strengthening financial coordination between the federation and provinces.
The prime minister made the announcement during a meeting with a World Bank delegation led by Country Director for Pakistan, Bolormaa Amgaabazar, according to an official statement issued by the Prime Minister’s Office on Friday.
During the discussion, he emphasized that Pakistan’s constitutional federal framework, provincial autonomy, and close cooperation between federal and provincial governments remain essential for the country’s long-term stability and development.
Welcoming the World Bank delegation, Prime Minister Shehbaz praised the institution’s longstanding partnership with Pakistan and acknowledged its contributions to the country’s socio-economic progress.
He expressed gratitude for the World Bank’s continued support and engagement in Pakistan’s development initiatives.
The premier highlighted that the government is actively implementing a broad reform agenda aimed at ensuring macroeconomic stability, accelerating growth, and improving governance.
He noted that analytical studies and international comparisons prepared by organizations such as the World Bank provide valuable insights for policymakers and help shape informed decision-making.
Referring to the report titled “Strengthening Fiscal Federalism in Pakistan,” the prime minister described the study as a significant contribution to policy discussions.
He instructed authorities to establish a high-level committee that will thoroughly review the report and its recommendations in consultation with provincial governments and other stakeholders.
The committee will assess the proposals while taking into account Pakistan’s constitutional framework and federal structure. The objective is to identify practical and implementable recommendations that serve the public interest and support sustainable economic management.
During the briefing, the World Bank delegation presented key findings of the report, focusing on the evolution of fiscal federalism following the 18th Constitutional Amendment and the 7th National Finance Commission (NFC) Award. The report also examined revenue generation, public expenditures, fiscal relations between the federation and provinces, institutional coordination, and the efficient use of public resources.
The World Bank further proposed policy measures to enhance fiscal discipline, improve resource utilization, strengthen public service delivery, and promote better coordination among federal and provincial institutions.
Senior government officials, including Deputy Prime Minister Ishaq Dar, federal ministers Ahad Khan Cheema and Ahsan Iqbal, Adviser Dr. Syed Tauqir Shah, and Minister of State Bilal Azhar Kayani, attended the meeting.