THE first session of the 11th National Finance Commission (NFC) in Pakistan, held on December 4, 2025, ended in a cordial atmosphere, with both federal and provincial representatives expressing satisfaction with the constructive dialogue. The participants agreed to consider Khyber-Pakhtunkhwa’s share in the NFC award after the merger of FATA and PATA into the province and that a working group will be formed to review federal and provincial shares.
The distribution of resources of the federal divisible pool is a sensitive and complex issue, therefore, understandably, it takes time to finalize a consensus formula for the purpose. However, given the divergent views expressed repeatedly by different stakeholders, it is encouraging that proceedings of the inaugural session remained cordial and the participants representing the federation and the provinces expressed the resolve to adopt an accommodative approach. Finance Minister Muhammad Aurangzeb said discussions would be conducted with an open mind, stressing that the federal government would consider the provinces’ perspectives. KP Chief Minister Sohail Afridi said that a strong federation and strong provinces will guarantee a strong and united Pakistan. Sindh Chief Minister Murad Ali Shah said the session was conducted in a positive atmosphere while Punjab’s Finance Minister Mian Mujtaba Shuja-ur-Rehman that consensus would require serious effort but was vital for equitable resource distribution and policy consistency between the Centre and provinces. Balochistan’s Finance Minister Mir Shoaib Nosherwani echoed these sentiments, stressing the province’s longstanding cooperation with the federation and citing contributions such as Sui gas, Saindak and Reko Diq. Public statements notwithstanding, it is hoped all stakeholders will contribute their share to finalize an acceptable formula for distribution of resources in line with ground realities.
