The National Finance Commission constituted in July 2020 has been dissolved, as President Asif Ali Zardari on Friday set up the 11th NFC to overhaul revenue-sharing and fiscal coordination between the federation and provinces.
According to a Finance Division notification shared by Advisor to the Finance Minister Khurram Schehzad, the new commission will “recommend distribution of revenues, grants, borrowing powers & cost-sharing on national projects.” The Finance Division, under the Rules of Business, 1973, will provide secretariat support.
Federal Finance Minister Muhammad Aurangzeb will chair the commission, which also includes provincial finance ministers. Other nominated members are Nasir Mahmood Khosa from Punjab, Dr Asad Sayeed from Sindh, Dr Musharraf Rasool Cyan from Khyber Pakhtunkhwa, and Farman Ullah from Balochistan.
Under clause (2) of Article 160 of the Constitution, the Terms of Reference empower the NFC to advise the president on the distribution of net proceeds of federal taxes, mechanisms for federal grants to provinces, exercise of borrowing powers, and burden-sharing of expenditures on provincial or trans-provincial subjects. The commission is also tasked with cost-sharing for national projects and may consider “any other matter relating to finance referred to the commission by the president.”
The notification concluded: “The National Finance Commission constituted vide Notification No. S.R.O. 635(I)/2020 dated the 21st July, 2020 shall stand dissolved with immediate effect.”
