Ahmed Khan Malik

Balochistan will receive around Rs726 billion from the federal government under various allocations during the current fiscal year.

According to the breakup of the federal receipts, the province will receive Rs647 billion from the divisible pool under the National Finance Commission. The federal government will make direct transfer of Rs20.5 billion to Balochistan. Whereas Rs20 million will be given to the province as non-development grants and Rs59 billion will be transferred as development grants. Other major revenue streams include Rs47.7bn from provincial taxes and Rs76.8bn from provincial non-tax receipts. “Balochistan is primarily dependent on the revenues and funds transferred from the federal government under the NFC award and other assignments. Nonetheless, the province is making every effort to increase the scope of its sources of revenue by producing its own revenue and updating the procedures for collecting receipts,” Fayyaz Notezai, Director of Finance Department, told WealthPK. 

He said that the Balochistan government’s receipt envelope was made up of three main sources: capital revenues, provincial own source revenues, and federal payments. “While formulating the budget, we made every possible effort to ensure the efficient allocation of resources, minimise non-development expenses, and allocate more funds towards development projects that would have a significant positive impact on a large portion of the population. We are also implementing institutional reforms aimed at strengthening our own revenue sources, particularly through the improvement of tax collection mechanisms,” Notezai said, adding that these initiatives were anticipated to enhance the management of public finances, enhance service delivery and contribute to the reduction of the budget deficit.

“Exercising control over operational expenses is of utmost importance to us,” he emphasised. “We are mobilising our finest talent, devoting substantial time, and putting in diligent efforts to effectively manage the increase in salary and pension expenditures. We have identified viable opportunities to generate savings in these areas and are actively working towards their realisation,” he said.  Mustafa Baloch, Director of the Planning Board, told WealthPK that federal projects played a crucial role in the development of Balochistan. “These projects, funded either entirely by the federal government or through a 50-50 cost-sharing arrangement, are designed to address critical needs in the region and promote equitable growth. These can be investments in infrastructure such as roads, energy projects, and educational facilities, which aim to improve connectivity, access to services, and overall quality of life for residents.”

“Federal funding helps bridge gaps in provincial resources and provides essential support for large-scale initiatives that can drive long-term development,” he said.  Baloch noted that the success of federal projects in Balochistan depended on effective planning, coordination and implementation to ensure that they met local needs and fostered sustainable development. “By targeting key areas such as economic development, health, and education, these projects aim to create a more balanced and inclusive growth trajectory for the province. However, challenges such as logistical issues, security concerns and the need for local capacity building can impact the efficacy of these projects,” he emphasised.

Credit: INP-WealthPk