Long-delayed NFC to open talks today on new revenue-sharing formula

The first meeting of the 11th National Finance Commission (NFC) is scheduled to convene today (December 4) under the chairmanship of Finance Minister Muhammad Aurangzeb, marking the start of formal discussions on a new revenue-sharing arrangement between the federation and provinces. 

The session has been delayed several times, including the last scheduled date of November 10, due to the unavailability of members. Officials said all provinces have now confirmed their participation.

Ahead of the meeting, Khyber Pakhtunkhwa has finalised a list of priorities it intends to place before the commission. These include updating the 7th NFC Award to account for the integration of the former FATA districts, increasing the war on terror allocation from 1% to 3%, resolving disputes under Article 161 relating to excise duty on oil, revising the framework for excise duty on gas and the windfall levy, and setting a monthly schedule for NFC meetings to ensure continuity. 

KP has also argued that the current NFC framework is inconsistent with Article 160 because it does not incorporate the ex-FATA region following the 25th Amendment.

The maiden sitting, initially planned for August 28, was postponed at Sindh’s request due to the province’s flood-related emergency. The NFC Secretariat later issued fresh schedules.

As per reports, today’s meeting is expected to approve the formation of technical sub-groups and endorse a negotiation roadmap for the coming months. The discussions ahead are expected to be challenging, given the federal government’s limited fiscal space, rising debt servicing costs and simultaneous provincial demands for a larger share of national revenues.