KP demands NFC award revision, warns of supreme court move

The Khyber Pakhtunkhwa (KP) government has declared the current National Finance Commission (NFC) award unconstitutional and set an April 2025 deadline for its revision, warning of approaching the Supreme Court if the federal government fails to convene the Commission.

Addressing a high-level policy dialogue on the NFC Award, Chief Minister Ali Amin Gandapur stressed that the existing revenue distribution formula fails to account for the province’s expanded population and land area following the merger of former FATA. He stated that KP’s rightful NFC share should have increased from 14% to 19.6%, yet the province has not received its due allocations.

Gandapur criticised the federal government for reneging on its promise of Rs100 billion annually for the development of merged districts, of which only Rs132 billion has been disbursed in six years. Additionally, KP receives only Rs66 billion instead of the committed Rs88 billion for operational expenses in these districts.

The chief minister warned that continued neglect would deepen public distrust and signaled that KP would take “surprise action” in May 2025 if the issue remains unresolved. He also emphasised KP’s contributions in counterterrorism efforts and environmental conservation, urging the inclusion of climate-related allocations in the NFC framework, as seen in India.