WEBDESK: The federal government is preparing to establish the 11th National Finance Commission (NFC) to develop a new formula for distributing financial resources among the provinces.
According to official sources, the new NFC will present its recommendations after the announcement of the federal budget for the fiscal year 2025-26. The Ministry of Finance has already sent formal letters to the provincial finance ministers, asking them to nominate technocrat members for the commission.
Dr. Asad Saeed is expected to represent Sindh, while renowned economist Dr. Kaiser Bengali will be the technocrat from Balochistan. Once the names from Punjab and Khyber Pakhtunkhwa are received, the formation of the commission will be finalised.
Sources revealed that the new NFC may also consider proposals to increase the provinces’ share in the federal divisible pool. To support the commission’s work, several working groups will be formed. These groups will be responsible for detailed analysis and will submit their findings to assist the main commission.
The finance minister will serve as the chairman of the NFC, and the finance secretary will act as the commission’s special assistant.
The commission is expected to begin its work on the new NFC award in August this year. Sources further said that the government will also consult the International Monetary Fund (IMF) on various issues, including the formation and direction of the financial award.
This comes as the 10th NFC commission is set to complete its five-year term on July 23, 2025, without finalising the long pending 8th financial award. The last award was agreed upon in 2010 and officially expired in 2015. Since then, the federal government has been extending the previous arrangement every year on an ad-hoc basis.
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