11th NFC Holds Maiden Meeting, Forms Working Groups to Shape Pakistan’s Future Fiscal Framework
The inaugural meeting of the 11th National Finance Commission (NFC) was held in Islamabad under the leadership of Finance Minister Muhammad Aurangzeb, marking an important step toward redefining Pakistan’s federal-provincial fiscal landscape. Senior representatives from all four provinces — including chief ministers, finance ministers, and technical experts — gathered to outline priorities for the upcoming NFC Award.
During the session, participants engaged in detailed discussions on resource distribution, revenue-sharing formulas, and the constitutional framework guiding the NFC. The meeting was described as constructive, cooperative, and inclusive, with all provincial stakeholders expressing their views without pressure or reservations.
Working Groups to Drive Technical and Policy Decisions
One of the most significant outcomes of the maiden meeting was the announcement of six to seven specialized working groups. These groups will analyze critical components of the fiscal system, including revenue generation, expenditure responsibilities, and provincial shares under the upcoming NFC Award.
A particularly notable development was the formation of a dedicated working group focused on integrating former FATA districts into the national fiscal structure. The group will examine how these newly merged areas can be effectively included in revenue-sharing arrangements following their merger with Khyber Pakhtunkhwa. Officials highlighted that this step is essential for ensuring equitable development and financial inclusion across all regions.
In addition to FATA integration, other working groups are expected to review federal transfers, provincial taxation potential, and overall financial sustainability. Their findings will shape recommendations for the next phases of NFC deliberations.
A Renewed Push After the 10th NFC Award Lapsed
The meeting also reflected a renewed commitment to fulfilling constitutional obligations under Article 160, especially after the 10th NFC Award expired earlier this year without a conclusive agreement. With Pakistan facing economic pressures and evolving development needs, the 11th NFC is seen as an opportunity to create a more stable and transparent fiscal framework.
Finance Minister Aurangzeb emphasized that the Centre and provinces must work collaboratively to reach a consensus that supports national growth while protecting provincial autonomy. Provincial leaders echoed this sentiment, expressing optimism that the structured working groups will help streamline complex technical issues.
The NFC Secretariat confirmed that the next meeting will be held in early January 2026, where preliminary findings from the working groups will be reviewed. Stakeholders hope the upcoming sessions will pave the way for a sustainable and mutually agreeable NFC Award.
Conclusion
The maiden meeting of the 11th NFC marks a crucial moment in Pakistan’s fiscal policy trajectory. With working groups now established and provincial engagement at the forefront, the process to finalize a new NFC Award has formally begun. As the country navigates financial challenges and development needs, the NFC’s progress will play a major role in shaping resource allocation and strengthening federal-provincial cooperation.
