The federal government constitutes multiple working groups to address key issues in the National Finance Commission (NFC) process. These groups aim to streamline resource distribution and improve fiscal policies across all provinces.
Sources shared with ARY News indicate that developments are ongoing in all four provinces regarding the NFC process. The federal government constitutes specialized working groups to handle provincial concerns and ensure equitable financial management.
One group constitutes recommendations on provincial jurisdiction expenditures and is chaired by the Finance Minister of Punjab. Another group, focusing on the distribution ratio of resources between federal and provincial governments, will be led by the Finance Minister of Balochistan.
Additionally, a working group constitutes an analysis of the national debt’s structure and utilization. The Finance Minister of Khyber Pakhtunkhwa will lead a separate group aimed at improving the tax-to-GDP ratio in the province.
For direct transfers of resources to provinces, the Finance Minister of Sindh will chair a dedicated working group. Furthermore, a divisible pool working group has been constituted under Federal Finance Minister Mohammad Aurangzeb. Another group has been formed to address issues arising from the merger of former FATA and its NFC share.
The first meeting on the 11th NFC Award was held on December 4. During the session, federal and provincial representatives decided to constitute these working groups to develop recommendations within their respective mandates.
Sources indicate that the second meeting on the NFC process is expected by mid-January next year. The federal government constitutes these groups to ensure all provinces’ issues are addressed efficiently and transparently.
Experts say constituting specialized working groups can help in resolving long-standing disputes over resource distribution. By focusing on specific areas such as taxation, debt management, and direct transfers, the NFC process aims to promote equitable development across Pakistan.
The initiative reflects the federal government’s commitment to strengthening inter-provincial coordination and financial governance. Proper execution of these working groups’ recommendations could enhance transparency and efficiency in resource allocation nationwide.
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