Published June 9, 2026 Updated about 2 hours ago By Tahir Amin ISLAMABAD: The federal government has yet to secure the consensus of provincial governments on a proposal to retain around Rs1.1 trillion to Rs1.2 trillion from the provinces’ shares under the National Finance Commission (NFC) Award for strategic spending and federal development projects, creating uncertainty over the Federal Budget 2026-27. This was stated by Khyber Pakhtunkhwa Finance Adviser Muzammil Aslam while speaking to the media here on Monday. He further said that the budget process remains incomplete as key fiscal figures have yet to be finalized with the International Monetary Fund (IMF). “Budget-making process was facing unprecedented difficulties, warning that unresolved disputes between the federal government and provinces, coupled with pending negotiations with the IMF, could delay the presentation of the federal budget beyond June 10”, said the advisor, while adding that a federal government delegation led by Ahsan Iqbal had met KP Chief Minister earlier in the day to discuss budget-related matters. He said the National Economic Council (NEC) meeting is scheduled for Tuesday, but its postponement cannot be ruled out, given the difficult situation. He added that the KP government’s participation in the NEC meeting is linked to being allowed to meet PTI founder Imran Khan. Aslam added that a meeting with PTI founder Imran Khan had become “unavoidable” amid the ongoing fiscal negotiations, expressing confidence that the party founder would not reject any reasonable request aimed at resolving the impasse. According to Aslam, the federal government wants provinces to surrender part of their NFC shares to finance strategic requirements and the Public Sector Development Programme (PSDP), but no consensus has been reached. Earlier Rs 1.7 trillion was quoted to be surrender by provinces a per federal government demand, however, the adviser said that based on estimated revenue collection of around Rs 1500 trillion by the Federal Board of Revenue (FBR), provincial governments would have to surrender around Rs 1.1 trillion to Rs 1.2 trillion under the proposed agreement, where KP…