According to sources, the IMF has proposed support in developing a new formula for resource distribution between the federation and the provinces.

Discussions are reportedly underway on including new indicators such as education, tax collection, performance, and environmental initiatives in the upcoming award.

Sources said the proposal also includes reducing the weightage of population in the formula, currently set at 82 per cent, to create a more balanced framework that reflects broader national priorities.

However, the Ministry of Finance clarified that no formal consultation with the IMF has yet taken place on the NFC issue.

The ministry added that a new formula is being considered to align with Pakistan’s long-term national interests.

An NFC Commission meeting has been tentatively scheduled for November 18, sources added, noting that both federal and provincial representatives are expected to deliberate on key adjustments to the distribution criteria.

Officials believe that revising the NFC formula has become necessary to ensure fairer allocation of resources and promote fiscal responsibility among provinces.