Islamabad provincial status proposal gains political support

Pakistan's ruling party is backing a proposal to grant Islamabad provincial status to address long-standing governance and funding issues. Currently, residents contribute significantly to national revenue through income and property taxes but do not receive a direct share in the National Finance Commission (NFC) Award, which distributes resources among provinces.

To support this transition to an autonomous administrative unit, plans are being developed to implement local taxes. The revenue generated would be earmarked for Islamabad's own infrastructure, including hospitals, schools, and administrative services. The Federal Board of Revenue is expected to draft initial tax proposals, which will undergo several stages of approval, including review by the Prime Minister and consultation with the International Monetary Fund (IMF).

The proposal has sparked debate within the Senate. While members of the PML-N and PTI have expressed support for creating smaller administrative units, other senators have raised concerns regarding the constitutional mandate required for such changes and the timing of the move given the country's current security situation.