The federal government has decided to convene the long-delayed meeting of the National Finance Commission (NFC) on November 18, in an effort to revive stalled discussions on fiscal harmonization.
The upcoming meeting is seen as an important step toward developing a new revenue-sharing formula between the Centre and the provinces.
Finance Minister Muhammad Aurangzeb will chair the session in Islamabad, where federal and provincial representatives are set to discuss the proposed NFC Award. The Award determines how national financial resources are distributed and is central to Pakistan’s fiscal structure.
A previous meeting planned for November 10 was postponed due to the unavailability of some members. According to a senior official, holding the session on November 18 would represent significant progress in moving the NFC process forward.
The first sitting of the Commission will likely review initial working-level proposals, form technical sub-groups, and outline a negotiation roadmap for the coming months. Federal officials describe this phase as a time-bound and result-oriented effort to reach agreement on a new Award.
The 11th NFC was notified on August 22, but its maiden meeting scheduled for August 28 was deferred at Sindh’s request after the province declared an emergency due to widespread flooding. The NFC Secretariat postponed the session accordingly.
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Officials acknowledge that the negotiations will not be straightforward, given the Centre’s tight fiscal position, increasing debt servicing obligations, and provinces’ calls for greater autonomy and resource allocation.
The November 18 meeting, if held as planned, will mark the first formal move toward replacing the 7th NFC Award, which has shaped federal-provincial financial relations for more than a decade.
