World Bank’s fiscal federalism report: PM sets up high-level body

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday directed the formation of a high-level committee to review the World Bank’s report on strengthening fiscal federalism in the country and examine its recommendations in consultation with the provinces and other stakeholders. The directive came during a meeting between the prime minister and a World Bank delegation led by Country Director Bolormaa Amgaabazar, where the delegation presented the report titled “Strengthening Fiscal Federalism in Pakistan. ” The committee will conduct a detailed assessment of the report’s proposals while keeping the country’s constitutional framework, provincial autonomy, and federal structure in view, with the aim of developing actionable recommendations in the public interest, said a statement issued by the Prime Minister’s Office. READ MORE: Fiscal imbalances: World Bank advocates for ‘overhaul’ of NFC Award During the meeting, the World Bank delegation briefed the prime minister on key findings of the report, including the evolution of fiscal federalism following the 18th Constitutional Amendment and the 7th National Finance Commission (NFC) Award. The report also examined issues related to revenue generation, public expenditure, federal-provincial fiscal relations, institutional coordination, and the effective utilisation of public resources. Sharif appreciated the World Bank’s analysis and comparative assessment based on international experiences, saying such studies provide valuable guidance for policymaking. He also acknowledged the institution’s continued support for Pakistan’s socio-economic development. The prime minister said the government was pursuing a reform agenda aimed at stabilizing the economy and placing it on a path of sustainable growth. He stressed that cooperation and consultation between the federal and provincial governments, along with respect for the country’s constitutional arrangements, were essential for development and stability. The World Bank delegation highlighted policy recommendations focused on improving fiscal discipline, strengthening resource management, enhancing public service delivery, and promoting greater coordination between federal and provincial institutions. The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Federal Ministers Ahsan Iqbal and Ahad, Minister of State Bilal Kayani, and senior government officials. Copyright Business Recorder, 2026

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