The NFC meets in Islamabad as formal talks begin on a new revenue-sharing formula between the federal government and the provinces. The session marks the start of detailed negotiations under the 11th National Finance Commission, which was officially notified on August 22.
The meeting is chaired by Finance Minister Muhammad Aurangzeb. It is attended by the chief ministers of Khyber Pakhtunkhwa and Sindh, Sohail Afridi and Murad Ali Shah. Provincial finance ministers, the KP finance adviser, the Chairman of the Federal Board of Revenue, and other commission members are also present.
Private members of the NFC, including Dr. Asad Syed from Sindh, Nasir Khosa from Punjab, Mehfooz Ali Khan from Balochistan, and Dr. Musharrif Rasool from Khyber Pakhtunkhwa, have joined the discussion. Their input is expected to help guide key decisions during the dialogue.
The NFC meets after several delays, making this the first official sitting of the 11th NFC. The session is important because it will set the direction for future financial arrangements between the Centre and the provinces. The federal government has already indicated that rising debt servicing and resource shortages have created financial pressure.
The Federal Secretary Finance will brief the participants on the overall financial situation of the country. This includes current revenue trends, expenditure demands, and challenges faced by the federal treasury.
Provinces are likely to resist any proposal that reduces their share in the National Finance Commission Award. They are expected to oppose shifting additional financial responsibilities to the Centre. This difference in positions suggests that negotiations may be difficult and require careful planning.
The inaugural session is also expected to approve the formation of technical sub-committees. These groups will prepare detailed studies and support structured talks in the coming months. A roadmap for the negotiation process will also be finalized.
As the NFC meets, expectations remain high that the dialogue will lead to a fair and sustainable revenue-sharing mechanism that addresses both federal constraints and provincial needs.
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