ISLAMABAD:
As unrest in Azad Jammu and Kashmir continues to test the political temperature, PPP Chairman Bilawal Bhutto-Zardari on Thursday linked internal stability with broader national cohesion.
Linking the broader political environment to unrest in Azad Jammu and Kashmir, Bilawal said protesters “cannot damage Pakistan or the Kashmir cause, nor would they be allowed to” and insisted disputes should be settled through parliamentary means rather than street agitation.
Speaking in the National Assembly, he urged restraint and dialogue, saying: “This surely is a complication, but we should not cause harm to anyone’s life or property due to this complication.”
He added: “These people come and sit in Muzaffarabad, create an uproar, issue threats and think that this is how constitutions are formulated.”
“This is not how it happens. We must convince the All Jammu and Kashmir Muslim Conference (AJKMC), Muslim League that what the appropriate consensus is.”
Reiterating Pakistan’s position on Kashmir, he said: “I want to see Azad Kashmir azad [free]. I do not want to see Azad Kashmir like occupied Kashmir.”
Defending refugee representation, he added: “If this is not acceptable to anybody else, to hell with that.”
He stressed consensus-building: “Kashmir will decide about Kashmir.”
He also thanked voters for the PPP’s electoral performance in the region, calling its residents the “most patriotic Pakistanis”.
On Gilgit-Baltistan, he questioned continued exclusion from parliamentary representation, asking: “Till when will we keep the people, who secured their independence from Dogra, deprived of their right to sit with me here in this house?”
He proposed interim representation in parliament until a final constitutional settlement is reached, saying: “Until there is a vote on the plebiscite, I request that this demand of G-B’s people should be considered, and PPP will try to carry this struggle forward and develop a consensus on the issue at the national level,” he said.
NFC
He said the federal government had assured provinces that their share under the 7th National Finance Commission (NFC) Award would remain protected despite the freeze on provincial development allocations, even as he stressed that Pakistan now required durable, growth-driven economic planning instead of ad hoc fiscal adjustments.
Participating in the budget debate following his meeting with Prime Minister Shehbaz Sharif a day earlier, Bilawal said the Centre and provinces had jointly evolved a constitutional mechanism to meet defence and national security requirements without undermining provincial financial rights.
At the same time, he urged both tiers of government to move beyond stopgap arrangements and build a long-term economic framework capable of addressing structural weaknesses in the federation.
His appearance in the House came after days of political friction between the PPP and the federal government over budgetary provisions.
The PPP chief had earlier warned of a possible boycott of the budget session if his party’s concerns were not addressed, while sources said he had objected to certain proposals that differed from those earlier shared with the party.
Following Wednesday’s engagement at the Prime Minister’s House, however, the government agreed to accommodate PPP concerns.
Addressing lawmakers, Bilawal said: “The provinces’ NFC award and financial resources have been kept protected; no damage will be caused to them.”
“Besides this decision, the provincial governments will not be required to make any sacrifices,” he added.
He noted that the government had decided to freeze provincial development allocations for three years in order to generate over Rs900 billion for the Centre’s strategic requirements.
Describing the arrangement, he said the federation and provinces had agreed to collectively shoulder “extraordinary needs pertaining to defence and national security”.
He emphasised that the understanding was purely constitutional in nature.
“We came up with such a constitutional and democratic solution which meets the national security needs and also minimises complaints from the provinces,” he said, adding: “The Constitution enables that if the provinces and the federal government have to spend on a subject which does not fall under their domain, under the article, provinces can give grants to the Centre or the Centre can give grants to the provinces.”
Thanking the prime minister, deputy prime minister and finance minister for their engagement, he said: “This is not just a financial or administrative [success], but the success of Pakistan’s politics. It is proof that when national interest is at stake, then democratic institutions, political parties, and all parts of the federation can make decisions together,” he said.
He further noted that the consensus had emerged at a time when the “India-Israel nexus wants to harm Pakistan in every way, [such as] terrorism and our issues with Afghanistan”, and welcomed cooperation from the PTI-led Khyber Pakhtunkhwa government.
“If PTI and our opposition allies adopted similar politics, where there could be political differences […] but we work together like this in national interest, then there is no issue that we cannot face,” he remarked.
At the same time, Bilawal cautioned that such fiscal arrangements remain temporary in nature. He called them “non-sustainable solutions” and stressed the need for a comprehensive, long-term growth strategy.
He urged federal and provincial governments to adopt development-oriented economic policies instead of relying on short-term fixes.
He also sought to address speculation surrounding the budget, including rumours about the 18th Amendment and changes to the NFC Award, rejecting the impression that provinces had excess fiscal space while the Centre faced constraints.
“While it is true that the NFC and 18th Amendment were historic and constitutional achievements, it is also true that despite these, no province has been given its due share,” he said.
He argued that provinces had repeatedly carried the burden of national economic stability, including through petroleum development levy arrangements that, he said, continued in a manner inconsistent with NFC principles.
“Instead of distributing the petroleum levy among the Centre and the provinces under the NFC formula, the Centre retains 100 per cent of it,” he said.
He further maintained that provinces were deprived of their rightful share in petroleum and gas levies.
He also highlighted provincial fiscal sacrifices made to avoid default, noting that surplus requirements limited provincial development spending. He said Punjab had made the “biggest sacrifice”, while Sindh’s Rs400 billion surplus could otherwise have been spent on development in Karachi and interior Sindh.
Turning to Khyber Pakhtunkhwa, he said challenges persisted in the merged tribal districts, arguing that these areas had not been adequately reflected in NFC allocations. He said both levels of government had “failed in fulfilling their promises” regarding development in these regions.
Earlier, Bilawal praised Pakistan’s leadership for its role in facilitating peace efforts between the United States and Iran, saying stability was essential for economic progress. “We have experienced the economic impact of uncertain situations. This is why Pakistan always promotes peace,” he said.
He added: “When there is stability in the region, investment increases. When there is peace, the youth get employment, and the country progresses.”
However, he warned that regional tensions remained, citing issues along the Afghan border, “the threats of Operation Sindoor 2.0” from India and New Delhi’s position on the Indus Waters Treaty.
“I can say with pride that Pakistan has responded to the challenge with political unity and democratic tradition,” he said.
BISP a ‘national security programme’
Defending the Benazir Income Support Programme (BISP), Bilawal said it had been “targeted in an unfortunate and shameful manner” despite global recognition of its effectiveness.
He thanked the government for expanding allocations in the FY27 budget and argued that the programme served humanitarian, economic and security objectives.
“The second argument is that it is both humanity and Islam,” he said.
He said economic growth must begin from the lower strata of society.
“When one poor household gets BISP funds, […], they buy flour, medicine, books for the kids,” he said.
He further described BISP as a “national security programme”, arguing that terrorism and extremism could not be defeated through force alone.
“If you have to fight insurgency, militancy, extremism and terrorism, you have to win hearts and minds,” he said.
He concluded by urging a shift towards inclusive growth policies. “Our policies should be such that we focus on growth and progress in underdeveloped areas,” he said, arguing that sustainable development would reduce reliance on external borrowing and strengthen the federation.