The National Finance Commission (NFC) met on Thursday after months of postponements, formally initiating the process for negotiating a new revenue-sharing arrangement between the federation and provinces. Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the session, marking the first step toward structured dialogue on the next NFC Award.
In his opening remarks, Aurangzeb thanked the chief ministers, provincial finance ministers, secretaries, and other members for attending. He said the meeting fulfilled a constitutional obligation and provided an important opportunity for cooperation. Aurangzeb added that Prime Minister Shehbaz Sharif had taken a personal interest in ensuring the NFC convened without further delay, while provinces also showed willingness to move ahead in a timely manner.
Aurangzeb underlined the NFC’s role in the equitable distribution of resources, financial stability, and sustainable economic development. He said the forum brought together expertise from across the government and enabled collective decision-making.
The meeting had been deferred several times, including a scheduled sitting on November 10 due to member unavailability. The maiden meeting, planned for August 28, was postponed at the request of the Sindh government because of a flood-related emergency.
The inaugural session saw all key stakeholders express their commitment to building consensus. It was expected that the session would approve the formation of technical sub-groups and endorse a structured negotiation roadmap for the coming months.
During the meeting, Sindh reiterated its commitment to protecting its constitutional rights and fiscal share in the NFC process. Sindh government spokesperson Sukhdev Hemnani emphasized that the NFC Award is a constitutional guarantee for fairness and balanced development. He further added that Sindh’s position is based on constitutional clarity and economic rationale, stressing that stronger provinces lead to a stronger federation.
In his opening remarks at the meeting, Aurangzeb welcomed all participants and commended the provinces for their collaboration. He highlighted the importance of transparent and sincere dialogue in moving forward with the NFC process. Aurangzeb also acknowledged the provinces’ cooperation in signing the National Fiscal Pact and their efforts to achieve fiscal surpluses to align with IMF requirements.
The session provided an opportunity for all provincial leaders, including Sindh Chief Minister Syed Murad Ali Shah, Khyber Pakhtunkhwa CM Muhammad Sohail Afridi, Punjab Finance Minister Mian Mujtaba Shuja ur Rehman, and Balochistan Finance Minister Mir Shoaib Nosherwani, to share their perspectives. Shah reiterated Sindh’s commitment to national prosperity and stressed that consensus should be reached within the NFC framework. He also raised concerns about adjusting Khyber Pakhtunkhwa’s share following the merger of FATA districts.
Khyber Pakhtunkhwa’s Afridi expressed similar concerns, calling for the integration of newly merged districts and a revised share for his province. He also sought an increased allocation for the “war on terror” to reflect the province’s ongoing security challenges.
Punjab’s Shuja ur Rehman highlighted the need for consensus, acknowledging the effort required but expressing hope for a fair and successful outcome. Balochistan’s Nosherwani echoed the call for cooperation, citing his province’s significant contributions to the federation, including the Sui Gas and Saindak projects.
The meeting also included presentations from each province and the federal government, outlining their fiscal positions and priorities. These discussions helped create a shared understanding of the economic landscape and the challenges ahead. The Commission agreed to form technical sub-groups to finalize proposals and discussed a timeline for future meetings.
It was unanimously decided to create a sub-group focused on the merger of former FATA districts and their share in the divisible pool, with recommendations expected by mid-January 2026. The Commission concluded the meeting by reaffirming its commitment to transparency, professionalism, and collaboration, with the goal of achieving a fair and sustainable NFC Award for Pakistan.
