The 11th National Finance Commission (NFC) held its inaugural meeting in Islamabad, deciding to form working groups to advance financial matters. Finance Minister Mohammad Aurangzeb chaired the session, attended by provincial chief ministers and finance ministers of Sindh, KP, Punjab, and Balochistan.
Both federal and provincial governments presented briefings on their financial positions, highlighting transparency and cooperation.
Aurangzeb said the meeting was an important forum under Article 150 of the Constitution, emphasizing timely and constructive dialogue. He noted that devastating floods in Punjab, KP, and Sindh had delayed the session. The minister urged members to prioritize listening to each other and engage in fair, unbiased discussions for the country’s financial stability.
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The minister praised provinces for signing the National Fiscal Pact and cooperating on surpluses and IMF program compliance. He also highlighted the importance of unity during crises, such as floods and external threats, in shaping a strong federal approach to fiscal management. Aurangzeb called for sustained, meaningful discussions in the coming months to finalize the 11th NFC Award successfully.
Sources said six to seven working groups would be formed, including a separate group for former FATA matters. The next NFC session is scheduled for January 8 or 15, 2026, to continue discussions and monitor progress. Sindh Chief Minister Murad Ali Shah confirmed the formation of these groups to advance financial matters.
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Additionally, the Planning Ministry presented two new proposals for resource allocation to the Prime Minister. One suggests a 2.5% cut from divisible revenues for security, armed forces, and regional grants, leaving 57.5% for provinces and 42.5% for the federal government.
Another recommends deducting the Benazir Income Support Program and Higher Education Commission expenses first, potentially increasing federal resources by 11–12% by 2030. Factors like revenue generation, fertility, and forest cover may gain more weight than population in the new NFC formula.