Islamabad, December 4, 2025: The inaugural session of the 11th National Finance Commission (NFC) on Thursday agreed to establish six to seven working groups, including a dedicated group to address the financial integration of the former Federally Administered Tribal Areas (FATA).
The meeting, chaired by Finance Minister Muhammad Aurangzeb, brought together senior federal officials and provincial representatives, including Sindh Chief Minister Murad Ali Shah and Khyber Pakhtunkhwa (KP) Chief Minister Sohail Afridi. The next session will take place on January 8 or 15.
During the meeting, the federal finance ministry briefed participants on the country’s overall economic situation, while each province presented its fiscal outlook. The agenda focused on provincial financial shares and key decisions required for the next fiscal year.
KP reiterated its demand for the inclusion of the former FATA region in the upcoming NFC award. The province proposed increasing its share of the war-on-terror allocation from 1% to 3%, while calling for its overall NFC share to rise from 14.62% to 19.62%. KP officials also pressed for a resolution of matters related to Article 161 of the Constitution, and revisions to excise duty formulas for petroleum and gas.
KP further recommended that future NFC meetings follow a monthly schedule to speed up progress.
Sindh and KP both opposed any proposal to reduce provincial shares. Sindh Chief Minister Murad Ali Shah later told reporters that forming working groups was a positive step toward advancing fiscal matters.
KP Finance Adviser Mazamil Aslam said each working group would address a specific area, including one dedicated to the financial integration of former FATA. He described the session as “very positive,” noting that all participants contributed without pressure and agreed to move forward collectively.
The meeting featured detailed discussions on financial allocations under the NFC framework. Sources confirmed that six to seven working groups will be formed to expedite technical consultations on various aspects of fiscal distribution.
Finance Minister Muhammad Aurangzeb said the session marked an important step toward meeting constitutional obligations and strengthening intergovernmental cooperation under Article 150. He stressed that the priority was to listen to provincial concerns and work collaboratively.
Aurangzeb highlighted that the 10th NFC Award expired on July 21, 2025, underscoring the urgency of the current exercise. He praised provinces for their constructive engagement and for supporting the National Fiscal Pact, including commitments to maintain surpluses and adhere to the IMF programme.
He also commended provinces for their resilience in navigating economic challenges, climate-related disasters, and regional security pressures.
Participants included KP CM Sohail Afridi, KP Finance Adviser Mazamil Aslam, FBR Chairman Rashid Langrial, and private provincial members Nasser Khosa (Punjab), Shoaib Nosherwani (Balochistan), and Dr. Asad (Sindh).
The NFC’s previous three attempts, the 8th, 9th, and 10th commissions, concluded without a formal award, making the progress of the 11th NFC particularly significant.
