The provinces, particularly Sindh and Khyber Pakhtunkhwa (KP), strongly opposed the federal government’s move to shift selected expenditures onto provincial budgets during the maiden session of the National Finance Commission (NFC). They rejected federal suggestions that provinces should assume financial responsibility for the Higher Education Commission (HEC), Benazir Income Support Programme (BISP), and development projects traditionally executed under the Public Sector Development Programme (PSDP).

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