Health Minister Mustafa Kamal on Tuesday criticized the fund distribution formula under the National Finance Commission (NFC) award — which is based on provincial population size — calling it “flawed.”
During an address to the National Assembly, where debates on the federal budget for fiscal year 2026-27 were underway, Kamal noted that 82% of the NFC allocation is population-based. “What province will reduce its income by controlling the population?” he questioned.
Kamal pointed out that Balochistan, the smallest province by population, receives the lowest share under the current system. “If it wants to get a larger share like Punjab, it will have to increase its population,” he said, adding that population-based distribution is the “biggest flaw” in the NFC mechanism.
Without naming specific countries, the health minister highlighted that in a neighboring country, population weightage in the NFC award is only 17%, with the remainder allocated based on revenue, backwardness, income, and other factors.
