The federal government has officially launched the long-anticipated 11th National Finance Commission (NFC) discussions, marking a key step in determining the distribution of federal funds among Pakistan’s provinces. The talks come at a time of fiscal constraints and ongoing post-flood recovery efforts across the country.
The inaugural session of the 11th NFC award was chaired by Federal Finance Minister Senator Muhammad Aurangzeb and included provincial chief ministers, finance ministers, and senior economic officials. The meeting was described as a crucial platform for transparent and constructive dialogue, aiming to ensure fair fiscal distribution, long-term planning, and economic stability.
The discussions follow the expiration of the 10th NFC Award in July 2025. Delays in convening the talks were largely attributed to the devastating floods that affected Punjab, Sindh, and Khyber Pakhtunkhwa, causing unprecedented economic and humanitarian challenges. Minister Aurangzeb highlighted that the federal government prioritized reconvening the session promptly, with active cooperation from the Prime Minister’s office and provincial administrations.
During the meeting, the Finance Minister underscored the NFC’s pivotal role in promoting equitable resource allocation, fiscal stability, and sustainable economic development. He emphasized that the provinces had already contributed significantly to the National Fiscal Pact, maintaining necessary surpluses under the ongoing IMF program, reflecting their commitment to fiscal responsibility and national priorities.
“This forum allows for open dialogue and constructive engagement to address assumptions and concerns regarding the NFC process,” the minister said. He further stressed that listening to provincial perspectives and fostering cooperative decision-making would remain central to the award process, ensuring transparency and inclusivity in reaching consensus.
The 11th NFC award is expected to have a direct impact on both federal and provincial budgets, influencing development allocations, revenue sharing, and fiscal policy planning. The outcome of these discussions is particularly critical in light of the recent natural disasters and emerging economic challenges, which have placed additional pressure on government resources and highlighted the need for efficient and equitable distribution of funds.
Economic experts note that the success of the 11th NFC award will be measured not only by its alignment with legal and fiscal frameworks but also by its ability to strengthen intergovernmental cooperation, enhance provincial financial autonomy, and support Pakistan’s broader economic recovery and development goals.
As the talks progress, all stakeholders are expected to engage in detailed deliberations, balancing short-term needs with long-term objectives, while ensuring that the principles of fiscal equity, transparency, and accountability remain central to the process. The federal government’s commitment to a fair and inclusive outcome is seen as a positive step toward reinforcing trust between the center and the provinces and promoting a stable and resilient economic framework for Pakistan.
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