ISLAMABAD: Pakistan on Friday constituted the 11th National Finance Commission (NFC) to determine how federally collected revenues are divided between the Center and the provinces, amid renewed calls to revisit the resource-sharing formula that has remained unchanged for 15 years.
The 7th NFC Award, introduced in 2010, has continued far beyond its original tenure, with successive governments extending it annually due to disagreements between Islamabad and the provinces over a new arrangement.
According to a Finance Division notification, the commission will be chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb and include the four provincial finance chiefs. It will also include one expert member from all four provinces.
In pursuance of Clause (1) of Article 160 of the Constitution of the Islamic Republic of Pakistan, and in supersession of its Notification No. S.R.O. 635(1)/ 2020 dated the 21st July, 2020, the President of Islamic Republic of Pakistan is pleased to constitute the 11th National Finance Commission (NFC) with immediate effect,” the notification said.
Specifying the terms of reference, it said the commission will make recommendations to the president on how to distribute the net proceeds of specific taxes between the federation and the provinces.
