Pakistan, July 2 -- The World Bank has recommended that Pakistan revise the National Finance Commission (NFC) Award formula to improve fiscal federalism, strengthen revenue collection and ensure a more equitable distribution of resources among the provinces.

The recommendations were presented in the World Bank's report, Strengthening Fiscal Federalism in Pakistan, launched by lead economist Tobias Haque and Country Director Bolormaa Amgaabazar in Islamabad.

The report proposes revising both the vertical and horizontal resource-sharing formulas and adopting a fiscal equalisation model that allocates funds based on provinces' expenditure needs and revenue-generating capacity rather than population alone. It also recommends assigning great...