Constitutional reforms must fiscal discipline, policy continuity.
Tariq Khattak
Islamabad (Nov-10-2025)
Business leader and former president of the Islamabad Chamber of Commerce and Industry Shahid Rashid Butt has expressed confidence that the 27th Constitutional Amendment will help Pakistan restore fiscal balance, strengthen the federation, and create a stable environment for investment and growth.
Butt said Pakistan’s economy cannot grow under a fragmented governance structure where the centre bears most fiscal responsibilities while provinces run large surpluses without improving public services or expanding their tax base. The amendment can correct these distortions, improve economic discipline, and ensure that national priorities, from defence to debt repayment are adequately funded, he said.
Speaking to the business community, he noted that provinces collectively posted hundreds of billions in surplus in FY25 while the federal government struggled to finance development and social programs. A revised resource distribution formula, he said, would ensure fairer allocation of funds and push provinces to mobilise their own revenues, particularly from agriculture and services, sectors long exempt from effective taxation.
The business leader endorsed the idea of a Constitutional Court to expedite disputes and welcomed proposals to centralise certain national functions such as skills development, energy coordination, and security-linked infrastructure. A unified framework will enhance productivity and improve investor confidence, especially for long-term partners from the Gulf and China, who value predictability and policy continuity, he said.
He acknowledged concerns about consultation and transparency but emphasised that economic reforms cannot wait for endless political consensus. In his view, the amendment represents a pragmatic shift toward efficiency and accountability rather than an erosion of provincial rights.
The business community, Butt said, expects the reform to reduce policy fragmentation, curb wasteful spending, and align national development with fiscal realities under the IMF-supported stabilisation program.
The veteran business leader believes the amendment could improve Pakistan’s credit outlook if accompanied by stronger oversight and improved coordination between federal and provincial governments. Better resource management could slow inflationary pressures, while clearer authority lines could cut red tape and attract foreign capital.
“The economy needs discipline, not disarray,” Butt concluded. This amendment, if implemented fairly, can be the foundation for sustainable growth.
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