Pakistan could reduce annual government spending by Rs. 4 trillion to Rs. 5 trillion if the remaining subjects under the 18th Constitutional Amendment are fully transferred from the federal government to the provinces, the Senate Functional Committee on Devolution said on Thursday.

The committee, chaired by Senator Zamir Hussain, said the federal government has yet to complete the devolution process despite the constitutional changes introduced through the 18th Amendment.

Lawmakers called for the abolition of federal ministries that continue to oversee functions falling under provincial jurisdiction, arguing that provinces should assume full responsibility for devolved subjects while Islamabad cuts unnecessary administrative costs.

The committee also voiced concern over the infrequent meetings of the Council of Common Interests (CCI), saying the constitutional body, along with the National Finance Commission (NFC), must play a stronger role in resolving federal-provincial issues and improving coordination.

Senator Jan Muhammad Baloch said delays in convening CCI meetings were weakening constitutional institutions and stressed that substantial reductions in government expenditure were essential to tackle Pakistan’s fiscal challenges.

The committee further discussed the distribution of revenue from natural resources. Senator Zamir Hussain said oil- and gas-producing provinces had not received their rightful share for years, claiming Sindh generates oil worth around Rs. 3.7 billion per day, while Khyber Pakhtunkhwa also contributes significantly to national production without receiving proportional financial benefits.

The committee directed the federal government to submit a detailed report on oil and gas production and revenue sharing at its next meeting.