Pakistan, July 2 -- The World Bank on Wednesday, in its report titled "Strengthening Fiscal Federalism in Pakistan," stressed the need to reform the country's system of resource distribution among federal, provincial and local governments.

It warned that stronger fiscal coordination was essential to sustain economic stability, improve public service delivery and effectively respond to the demands of a rapidly growing population.

The report mentioned that the landmark 2010 reforms, the 18th Constitutional Amendment and the 7th National Finance Commission (NFC) Award, marked a major step forward by devolving key service delivery responsibilities to provinces and significantly increasing their revenues.

However, it highlighted that struct...