Federal, Provincial Governments Launch 11th NFC Process

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The federal and provincial governments have unanimously agreed to form technical sub-groups to work on specific mandates of the 11th National Finance Commission (NFC), the Finance Division announced. The decision came during the inaugural meeting of the 11th NFC, chaired by Finance Minister Senator Mohammed Aurangzeb at the Finance Division.

Originally scheduled for August 28, the maiden session was postponed due to flood emergencies in Sindh, Punjab, and Khyber Pakhtunkhwa. The rescheduled meeting focused on planning future sessions and establishing sub-groups, including one on the merger of former FATA/Newly Merged Districts and its share in the divisible pool, aiming to submit recommendations by mid-January 2026.

Aurangzeb emphasised the federal government’s commitment to transparent dialogue, praising provincial cooperation on the National Fiscal Pact and fiscal compliance with IMF requirements. He highlighted the NFC’s role in equitable resource distribution, fiscal sustainability, and long-term economic growth.

Provincial leaders, including Sindh CM Syed Murad Ali Shah, KP CM Muhammad Sohail Afridi, and Balochistan Finance Minister Mir Shoaib Nosherwani, reaffirmed their commitment to cooperation, consensus, and strengthening the federation. The meeting included detailed presentations on provincial fiscal positions and priorities, setting the stage for structured deliberations in the coming months.

The commission aims to deliver a fair, inclusive, and forward-looking NFC Award that supports national unity and sustainable economic development.

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