Centre decides to constitute new NFC for resource-sharing formula

The federal government is preparing to establish the 11th National Finance Commission (NFC) to propose a new national financial award for the distribution of resources among federating units, ARY News reported on Wednesday, citing sources.

According to sources, the commission will present its recommendations after the federal budget of FY2025-26.

Sources further said, the Ministry of Finance has sent letters to provincial finance ministers seeking nominations for technocrat members.

Asad Saeed is expected to represent Sindh, while Kaiser Bengali will be the technocrat member from Balochistan. The commission’s formation will be finalized once names are received from Punjab and Khyber Pakhtunkhwa.

Sources indicate that proposals to increase provincial shares under the NFC Award may also be considered. Working groups will be formed to assist the commission, and they will submit their reports accordingly.

The finance minister will serve as chairman of the commission, with the finance secretary acting as a special assistant.

The commission is likely to begin work on the new financial award in August. According to sources, the International Monetary Fund (IMF) will also be consulted on various matters, including the formation of the NFC.

The NFC commission is set up for a period of five year and the 10th Commission is going to meet its term on July 23rd without finalizing the 8th award.

The last award was finalised in 2010, which expired in 2015. Since then, the President of Pakistan has been extending the last consensus award every year on an ad-hoc basis.