The ruling PML-N and its coalition partner PPP have reached an understanding on fiscal adjustments for the coming year without formally amending the National Finance Commission (NFC) Award or restructuring the Benazir Income Support Programme (BISP), a senior cabinet source said.

Under the arrangement, provinces will adjust over a trillion rupees to ease pressure on federal finances. A technical committee will work out the modalities and timelines for the transfers.

PPP leaders insisted any formal change to the NFC remained off the table, calling the deal a 'practical accommodation' for one year only.