Significant news has emerged following reports that health Minister Mustafa Kamal on Tuesday criticised the formula of fund distribution under the National Finance Commission ( NFC) award — which is based on the size of every provinces ’ population — as “ flawed ”. In his remarks during an address to the National Assembly, where a debate on the federal budget fiscal year 2026-27 was ongoing, Kamal noted that the NFC formula was 82 per cent population-based.

The Broader Picture

The broader picture helps clarify the significance of what has unfolded.

“ What province will reduce its income by controlling the population? ” the minister, who belongs to the Muttahida Qaumi Movement-Pakistan ( MQM-P), said.

“ Balochistan is the smallest province [ population-wise] and gets the lowest share [ in the NFC].

Notably, if it wants to get [ a larger] share like Punjab, it will have to increase its population, ” he pointed out, adding the distribution of funds based on population was the “ biggest flaw ” in the system.

Without mentioning the name of any country, the health minister added that “ in our neighbouring country, the weightage of population in the NFC award is 17pc, ” although the rest was based on “ revenue, backwardness, income and other areas ”.

Expert Analysis

Reactions from key figures have helped frame what this development could mean.

In his remarks, Kamal stated that “ neighbouring countries are growing because they have controlled ” their population development.

Adding further dimension to the story, he further stated that if the current trajectory of population growth continued, “ we will need 64,000 new primary schools ”.

It has also emerged that “ Do we have the capacity in the budget to allocate the resources for it? ” he asked.

Adding to the complexity of the situation, the minister continued that at this rate, “ we have to provide jobs to 65 million young people [ and] will require 135,000 new beds in hospitals ”.

Impact on Americans

For many, the real significance lies not just in what happened — but in what comes next.

He proposed that a “ 32pc incentive ” had to be provided to every province that was trying to control its population.

Adding to the complexity of the situation, he also lauded the government ’ s proposal in the budget to remove tax on contraceptives, which was earlier set at 18pc, saying it would reduce the birth rate and would have a greater impact on the population.

Adding further dimension to the story, he moreover went on to highlight the issues in how funds allocated under the NFC were spent.

It has also emerged that “ Under the current system of governance … we can ’ t provide resources and solutions to people ’ s issues at their doorsteps, ” he said.

Looking Ahead

As this story continues to evolve, all eyes will remain on how key figures and institutions respond. Further developments are expected, and this news outlet will continue to follow the situation closely as it unfolds in the coming days.