Islamabad(The COW News Digital)Federal Minister for Planning and Development Ahsan Iqbal has dismissed reports suggesting that the government is considering placing Karachi under federal control, clarifying that no such proposal is under review.
Speaking during a private television program, Ahsan Iqbal stated that the federal government has not discussed or evaluated any plan to alter the administrative status of Karachi. He emphasized that speculation circulating on social media and in certain political circles does not reflect the government’s position.
Iqbal acknowledged that the federation is currently facing financial constraints, largely due to the distribution formula under the National Finance Commission (NFC) Award. Under the existing arrangement, provinces receive a significant share of national revenues, leaving the federal government with limited fiscal space to finance strategic and large-scale development projects.
“The federal government is encountering financial challenges because of the current NFC formula,” he said, adding that this situation has affected the pace of some key national initiatives. However, he reiterated that these financial pressures have no connection to any proposal regarding Karachi’s administrative control.
Addressing another policy matter, the minister clarified that the government has no intention of abolishing the Benazir Income Support Programme (BISP). He said discussions are underway about restructuring the payment mechanism so that provincial governments may directly disburse funds to beneficiaries within their jurisdictions.
According to Iqbal, following the 18th Constitutional Amendment, poverty alleviation falls within the domain of provincial governments. “The idea under consideration is that provinces could handle payments to eligible beneficiaries themselves,” he explained, noting that such a move would align financial responsibility with constitutional mandates.
The Benazir Income Support Programme remains one of Pakistan’s largest social protection initiatives, providing financial assistance to millions of low-income families across the country. Any administrative adjustments, the minister suggested, would aim to improve efficiency rather than reduce support.
Responding once again to questions about Karachi, Iqbal firmly stated that there is no proposal to bring the metropolitan city under federal administration. “There is no such plan under consideration,” he said.
His remarks appear intended to quell political speculation and reassure stakeholders in Sindh amid ongoing debates over fiscal distribution and governance reforms.
