Islamabad, August 22, 2025: President Asif Ali Zardari on Friday constituted the 11th National Finance Commission (NFC) to work out a new award for sharing federal divisible resources between the Centre and the provinces.
According to a Finance Division notification, Finance Minister Muhammad Aurangzeb will chair the commission, which also includes the four provincial finance ministers. Other members are former bureaucrat Nasir Mahmood Khosa (Punjab), economist Asad Sayeed (Sindh), former bureaucrat Dr Musharraf Rasool Cyan (Khyber Pakhtunkhwa) and Farmanullah (Balochistan).
The NFC will recommend the distribution of net proceeds of taxes listed in Article 160(3) of the Constitution, including income tax, sales tax, specified excise duties and export duties, as well as other levies determined by the president. It will also advise on federal grants to provinces, borrowing powers, and the sharing of financial responsibilities for provincial and national projects.
The 10th NFC expired on July 21. The 7th NFC Award, announced in 2009, remains in effect well beyond its five-year tenure, as successive governments failed to reach consensus on a new formula. Policymakers have long debated revising provincial transfers to ease the Centre’s strained finances, but the 18th Amendment protects provinces’ shares, ensuring they cannot fall below previous levels.
