.

PM Shehbaz Meets World Bank Delegation, Orders High-Level Review of Fiscal Federalism Report

ISLAMABAD, July 31, 2026: Prime Minister Muhammad Shehbaz Sharif on Friday directed the formation of a high-level committee to examine the World Bank’s report on “Strengthening Fiscal Federalism in Pakistan”, emphasizing that any future policy measures must align with Pakistan’s constitutional framework, federal structure, and the broader public interest.

The directive came during a meeting at the Prime Minister’s Office with a World Bank delegation led by Ms. Bolormaa Amgaabazar, the World Bank Country Director for Pakistan.

Welcoming the delegation, Prime Minister Shehbaz Sharif praised the World Bank’s longstanding partnership with Pakistan and acknowledged its continued contribution to the country’s socio-economic development. He thanked the institution for its sustained support during Pakistan’s development journey and reaffirmed the government’s commitment to implementing a comprehensive reform agenda aimed at ensuring economic stability and long-term sustainable growth.

The Prime Minister underscored that Pakistan’s constitutional federal system, provincial autonomy, and close cooperation between the federation and provinces remain essential pillars for national development and stability.

During the meeting, the World Bank delegation presented its report, “Strengthening Fiscal Federalism in Pakistan,” and briefed the Prime Minister on its key findings. The report reviews the evolution of fiscal federalism following the 18th Constitutional Amendment and the Seventh National Finance Commission (NFC) Award, examining revenue generation, public expenditure, fiscal relations between the federal and provincial governments, institutional coordination, and the efficient use of public resources.

The delegation also outlined a number of policy recommendations designed to strengthen fiscal discipline, improve public service delivery, enhance the efficient allocation of resources, and deepen cooperation between federal and provincial institutions.

Prime Minister Shehbaz Sharif appreciated the analytical depth of the report and the comparative international experience incorporated into the study, describing such research as an important contribution to informed policymaking.

He instructed that a high-level committee be established to conduct a detailed review of the report’s recommendations in consultation with all relevant stakeholders, including the provincial governments. The committee will assess the proposals within Pakistan’s constitutional and federal framework before identifying recommendations that serve the national interest.

Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar, Federal Ministers Ahsan Iqbal and Ahsan Cheema, Adviser to the Prime Minister Dr. Syed Tauqir Shah, Minister of State Bilal Azhar Kayani, and senior government officials also attended the meeting.

Background

Fiscal federalism has remained a central issue in Pakistan’s governance since the adoption of the 18th Constitutional Amendment in 2010, which devolved significant administrative and financial powers to the provinces. The Seventh NFC Award further redefined the distribution of national financial resources between the federation and provinces, increasing provincial shares in federal revenues.

As Pakistan continues economic reforms under international development partnerships, strengthening coordination between federal and provincial governments has become increasingly important for improving public finance management, enhancing service delivery, and ensuring sustainable economic growth. The World Bank’s latest assessment is expected to contribute to future discussions on fiscal governance and institutional reforms.