Prime Minister Shehbaz Sharif on Tuesday announced the formation of a federal committee to review Khyber Pakhtunkhwa’s (KP) share in the 2010 National Finance Commission (NFC) Award, acknowledging the province’s sacrifices in the fight against terrorism and its ongoing development needs.
Speaking at a jirga in Peshawar on regional peace and security, the prime minister said that the first meeting of the newly formed committee will be held in August, where key stakeholders will begin discussions on updating the existing resource-sharing framework.
“Shedding light on Chief Minister Ali Amin Gandapur’s concerns,” Shehbaz said, “I agree that after 15 years, it’s time to review the NFC formula.” He emphasized that the first clause of the 2010 NFC Award specifically provided funds to KP to support counter-terrorism efforts — a decision he termed “timely and crucial.”
According to Shehbaz, under the current award, KP has received more than Rs700 billion in federal transfers to date for its counter-terrorism initiatives. He affirmed that funding will continue until terrorism is eradicated completely.
The prime minister also assured that concerns of other provinces, including Balochistan, would be addressed amicably through inclusive dialogue, adding that balanced development and equitable financial distribution remain key goals for the federation.
This announcement signals renewed focus on inter-provincial fiscal equity, especially in the context of security-linked expenditures, post-merger tribal development, and rising regional demands.