Former President of the Islamabad Chamber of Commerce and Industry, Shahid Rasheed Butt, has emphasized that the 27th Constitutional Amendment is poised to stabilize Pakistan’s economy, strengthen the federation, and create a favorable environment for investment. On Monday, he pointed out that the country’s economic growth has been hindered by a fragmented financial structure where the federation bears most of the financial responsibilities. In contrast, the provinces, despite accumulating large surpluses, have not succeeded in improving public services or expanding the tax net.

The amendment aims to address these disparities, establish fiscal discipline, and prioritize national interests, particularly in defense and debt servicing. During a discussion with the business community, Butt highlighted that in the fiscal year 2024-25, the provinces reported surpluses of hundreds of billions, while the federation faced a shortage of resources for developmental and social initiatives.

He advocated for a revised formula for the equitable distribution of resources and urged the provinces to pursue tax reforms in agriculture and services. Furthermore, Butt expressed his support for the establishment of a constitutional court and for national-level coordination on projects related to energy, skills development, and security to restore investor confidence, particularly from Gulf countries and China.

Butt also warned against linking reforms with an unrealistic political consensus, arguing that it is detrimental to national interests. He said the amendment will guarantee policy continuity, reduce unnecessary provincial expenditures, and enhance transparency. An improved distribution of resources and a robust policy framework are expected to strengthen public welfare projects and promote genuine economic stability through a harmonious relationship between the federation and the provinces. This legislative change can pave the way for effective governance and sustainable development.