Punjab is Eating Other Provinces’ Share” — A False Narrative vs. The Reality

Punjab is Eating Other Provinces’ Share” — A False Narrative vs. The Reality

For years, a narrative has circulated in Pakistan claiming that Punjab “takes away” the share of other provinces, and that this is why Punjab is more developed. This slogan is often used to ignite emotions and sow provincial division. But when we examine the constitutional, fiscal, and production facts, the claim turns out to be the opposite of reality.

Natural Resources and Royalty Distribution — What the Constitution Says

Under the Constitution of Pakistan, the ownership of oil and gas is jointly held by the federation and the province where it is produced (Article 172(3)). The royalty and excise duty on natural gas are paid directly to the producing province (Article 161(1)). Since 2010, the development surcharge on gas also goes to the producing provinces.

This means that the gas produced in Balochistan, Sindh, or Khyber Pakhtunkhwa (KP) generates royalty that goes directly to those provinces—Punjab does not take it.

Gas Production and Consumption — The Real Picture

According to OGRA’s latest reports:

• Sindh: ~2,225 MMCFD gas production (the highest in the country)

• Balochistan: ~651 MMCFD

• Khyber Pakhtunkhwa: ~366 MMCFD

• Punjab: only ~92 MMCFD

Punjab produces the least gas, but due to its large population and industries, it consumes the most—around 52% of Pakistan’s gas. Sindh consumes ~39%, KP 7%, and Balochistan just 2%.

This clearly shows that gas is transported from other provinces to meet Punjab’s needs, but the royalty remains with the producing provinces.

NFC Award — How Money is Distributed

In Pakistan, most federal taxes (income tax, sales tax, customs duties, etc.) are collected by the federal government and then distributed among provinces according to the NFC (National Finance Commission) formula. The current NFC formula allocates 57.5% of divisible pool taxes to the provinces, based on population, backwardness, revenue generation, and population density.

In the 2025-26 budget, provinces received the following NFC allocations:

• Punjab: Rs 4.76 trillion (≈51.7%)

• Sindh: Rs 2.43 trillion (≈24.5%)

• Khyber Pakhtunkhwa: Rs 1.342 trillion + 1% extra (for war-on-terror impacts)

• Balochistan: Rs 743 billion (≈9%) — guaranteed by the Constitution even if federal revenues fall short.

Additionally, in the same budget, provinces collectively received Rs 217 billion extra as royalties and other resource-related revenues. For example, KP got around Rs 26.2 billion in gas royalties in FY 2024-25, with other income from multiple mechanisms.

The Real Issue — Budget Misuse, Not “Share Theft”

The data is clear:

• Resource revenues go to the province where production happens.

• Federal taxes are shared according to NFC, not Punjab’s will.

• Punjab runs on its NFC share and its own tax collection, not by “stealing” from others.

If a province has poor development and high problems, the main reason is mismanagement, corruption, and inefficient use of its budget by its own provincial government—not Punjab taking away its rights.

What Should Citizens Do?

• Instead of believing divisive slogans, ask your own provincial government where the billions from NFC and royalties are going.

• Demand spending on education, health, water supply, roads, and jobs.

• Push for local industry and better use of natural resources.

• Participate in monitoring development projects.

Conclusion: The slogan “Punjab is eating other provinces’ share” is emotionally charged but factually wrong. Real change will only come when every province’s people hold their own leadership accountable and ensure their resources are used wisely.

Syed Ali Raza Naqvi Bukhari

Unity of Peace, Economic Reform, and Global Unity

Founder & Chairman of Tehreek Istehkam Pakistan, and the author of “Law of God” and “Social Democratic System.”

Advocate for truth, social justice, and reform in all sectors of society.