Health Minister Mustafa Kamal Criticizes 'Flawed' NFC Fund Distribution Formula
Health Minister Mustafa Kamal on Tuesday criticized the fund distribution formula under Pakistan's National Finance Commission (NFC) award, labeling it as "flawed." Speaking during a National Assembly debate on the federal budget for fiscal year 2026-27, Kamal highlighted that the NFC formula is 82% population-based. He argued that this system discourages population control efforts by provinces, citing Balochistan as an example of a province receiving a lower share due to its smaller population. Kamal compared Pakistan's approach to an unnamed neighboring country where population weightage in the NFC award is 17%, with the remainder based on revenue, backwardness, and income. He projected that continued population growth would necessitate 64,000 new primary schools, jobs for 65 million young people, and 135,000 new hospital beds. Kamal proposed a 32% incentive for provinces actively working to control their populations and commended the government's removal of an 18% tax on contraceptives.
Health Minister Mustafa Kamal on Tuesday criticized the fund distribution formula established by the National Finance Commission (NFC) award, describing it as "flawed." His remarks were made during an address to the National Assembly, where a debate on the federal budget for fiscal year 2026-27 was underway.
Kamal noted that the current NFC formula allocates funds primarily based on population, with an 82% weightage. He questioned how provinces could be expected to control their populations and simultaneously reduce their income share. He specifically mentioned Balochistan, which receives the lowest share in the NFC due to its smaller population, suggesting it would need to increase its population to secure a larger allocation, akin to Punjab.
He further observed that a neighboring country's NFC award formula assigns only a 17% weight to population, with the remaining distribution based on factors such as revenue, backwardness, and income. Kamal emphasized that countries that have successfully managed population growth tend to experience greater development.
Looking ahead, Kamal warned about the potential strain on resources if the current population growth trajectory continues. He estimated a future need for 64,000 new primary schools, employment opportunities for 65 million young individuals, and an additional 135,000 hospital beds. He raised concerns about the budget's capacity to allocate resources for such demands.
To address these issues, the Health Minister proposed a "32% incentive" for provinces that demonstrate efforts in controlling their population. He also commended a government initiative to remove an 18% tax on contraceptives, predicting that this measure would contribute to a reduction in the birth rate and have a significant impact on population management.
According to Dawn Pakistan, these statements were part of a broader discussion on the federal budget.
