The inaugural session of the 11th National Finance Commission (NFC) on Thursday decided to establish six to seven working groups, including a separate group to address the issue of the former FATA.
The inaugural session was held in Islamabad under the chairmanship of Finance Minister Muhammad Aurangzeb and was attended by top officials from the provinces, including Sindh Chief Minister Murad Ali Shah and Khyber Pakhtunkhwa Chief Minister Sohail Afridi.
The next NFC session is scheduled to be held on January 8 or 15.
During the session, the federal finance ministry briefed participants on the country’s financial situation, while each province also presented its fiscal position.
The meeting focused on a three-point agenda covering provincial financial shares and key decisions for the upcoming fiscal year.
Khyber Pakhtunkhwa demanded the inclusion of former FATA in the seventh NFC award, proposing an increase in the province’s share of the war-on-terror fund from 1% to 3%.
The province also demanded that its total share be raised from 14.62% to 19.62% and emphasised resolving issues related to Article 161 of the Constitution.
KP further recommended revisions to excise duty formulas on petroleum products and gas, and suggested a monthly schedule for future NFC sessions.
Sindh and KP opposed any reduction in provincial shares, reiterating their concerns to the federal government.
Detailed discussions were held on financial allocations under the NFC award, with consensus reached to form sub-groups to expedite consultations.
Sources indicated that 6-7 working groups will be established, including a dedicated group to address the inclusion of former FATA in the financial framework.
Speaking to the media after the meeting, Sindh Chief Minister Murad Ali Shah said the decision to form working groups will help advance fiscal matters.
KP Finance Adviser Mazamil Aslam said separate groups will address specific issues, including FATA’s integration into the financial structure.
He said the session was conducted in a “very positive environment,” with no pressure on any participant and all parties agreeing to move matters forward collectively.
Finance Minister Aurangzeb highlighted the session as a key opportunity to fulfil constitutional responsibilities and promote mutual cooperation under Article 150 of the Constitution.
He noted that the 10th NFC award expired on July 21, 2025, increasing the importance of this meeting.
The minister praised provinces for their constructive engagement and reaffirmed the federal government’s commitment to transparent and productive dialogue.
Aurangzeb emphasised that the first priority is to listen to provincial concerns and work together in the spirit of cooperation.
He also appreciated provinces for their agreement on the National Fiscal Pact and their support for surpluses and IMF programme compliance, highlighting Pakistan’s resilience amid challenges such as floods and regional threats.
The session was attended by KP Chief Minister Sohail Afridi, KP Finance Adviser Mazamil Aslam, FBR Chairman Rashid Langrial, and private members from all provinces, including Nasser Khosa (Punjab), Shoaib Nosherwani (Balochistan), and Dr Asad (Sindh).
Notably, the previous eighth, ninth, and tenth NFC sessions ended without any conclusive outcomes.
