The inaugural session of the 11th National Finance Commission (NFC) will be held today in Islamabad to formally start negotiations on the horizontal and vertical distribution of divisible federal resources among provinces.
Federal Finance Minister Muhammad Aurangzeb will chair the meeting, which will focus on a three-point agenda. The session will include finance ministers from all four provinces and four non-statutory members: Dr. Asad Saeed (Sindh), Masoof Ali Khan (Balochistan), Nasser Mahmood Khosa (Punjab), and Dr. Musharraf Rasool Siyan (Khyber Pakhtunkhwa).
Read more: NFC meeting delayed again as growth outlook dips
Chief Ministers of Sindh and Khyber Pakhtunkhwa, who oversee provincial finances, will also attend. KP Chief Minister Sohail Afridi will lead a large delegation including his advisor Mazmil Aslam, a statutory member, and the provincial finance secretary.
The meeting will begin with a general discussion on strategies for the 11th NFC Award, including the proposed formation of sub-groups for thematic areas. Each province and the federal finance ministry will then make 10-minute presentations on their financial situation. The session will also set the schedule and timelines for upcoming NFC meetings, likely in both federal and provincial capitals, until consultations are complete.
Read more: President constitutes 11th NFC to divvy up revenue
The 11th NFC Award, formed on August 22, aims to establish a new formula for the distribution of divisible federal resources between the federation and provinces. Under Article 160, Clause 2, the NFC is responsible for dividing net proceeds from five major tax categories, including income tax, corporation tax, and capital value tax, excluding income tax related to salaries paid from the federal consolidated fund.