Sindh Pushes Back on NFC Cuts, Says Provinces Shouldn’t Pay for FBR’s Weak Tax Collection
Larkana, 2025:
Senior PPP leader and Chairman of the Sindh Assembly’s Public Accounts Committee, Nisar Ahmed Khuhro, has strongly criticized the idea of cutting provincial shares under the National Finance Commission (NFC) due to poor tax collection by the Federal Board of Revenue (FBR). He made it clear that provinces should not suffer because of inefficiencies at the federal level.
Speaking at a Pakistan Peoples Party (PPP) meeting in Shikarpur (Larkana division), Khuhro said that blaming provinces for federal revenue shortfalls is unfair and unconstitutional. He warned that any attempt to reduce the NFC award on the excuse of FBR’s underperformance would be strongly resisted.
“Give Sindh the Power, We’ll Deliver”
Khuhro suggested a practical solution: if the FBR is failing to collect taxes effectively, the federal government should hand over the responsibility of collecting taxes on goods and services to Sindh.
“Sindh is fully capable of collecting taxes,” he said, adding that the Sindh Revenue Board (SRB) has already proven its efficiency. According to him, the SRB currently collects over Rs300 billion every year, which shows Sindh’s strong administrative capacity.
He further stated that if Sindh is allowed to collect more taxes, any extra revenue can be transferred back to the federal government, ensuring no loss for the federation.
Constitution and 18th Amendment
Khuhro reminded the ruling PML-N government that the Constitution allows an increase in the NFC share for provinces, but does not permit any reduction. He particularly pointed out that the 18th Constitution Amendment ensures the financial rights of the provinces, and the PPP would rally around these rights.
Why This Matters in 2025
In 2025, when Pakistan is under economic pressure and revenue targets are tough, debates over tax collection and revenue sharing have become more intense. Provinces are of the opinion that instead of holding them back, the federal government should address the problems existing at FBR or should allow the better-performing provinces to excel.
Closing Thoughts
Khuhro’s words reflect an increasing level of provincial discontent with the federal government’s taxation performance. The message is simple: Provinces should not suffer at the expense of FBR incompetence. A greater devolution of taxing powers to the more efficient provincial authorities, such as SRB, might mean better collection performance and an easing of center-province relations overall. In the long run, cooperation, rather than point scoring, might hold the secret for sound fiscal stability in Pakistan.