The federal and provincial governments unanimously decided on Thursday to initiate the formation of technical sub-groups that “will undertake work on specific mandates relevant to the NFC’s functions”, the Finance Division said in a statement.
The decision was taken in the inaugural meeting of the 11th National Finance Commission (NFC) chaired by Finance minister Senator Mohammed Aurangzeb at the Finance Division.
The maiden meeting, originally slated for August 28, was deferred at the request of the Sindh government owing to the province’s flood-related emergency. The NFC Secretariat subsequently rescheduled the session.
The commission discussed “the proposed schedule and timeline for future meetings and agreed to initiate the formation of technical sub-groups that will undertake work on specific mandates relevant to the NFC’s functions,” the statement read.
The meeting also concluded with a decision that a sub-group on the merger of former FATA/ Newly Merged Districts, and its share in the divisible pool, would be constituted, which would facilitate early formulation of its recommendations for the NFC by mid-January 2026.
During the meeting, Aurangzeb emphasised that the federal government, as directed by the prime minister, was keen to convene the inaugural meeting of the 11th NFC without delay.
“While the session had been postponed earlier due to the devastating floods affecting Punjab, Khyber Pakhtunkhwa and Sindh, the Minister noted that today’s gathering reflected a shared resolve to fulfil a vital constitutional responsibility,” the Finance Division said.
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The minister stressed the government’s commitment to transparent and sincere dialogue, reaffirming that the federal government was present to listen to the provinces and work collectively in the national interest.
He commended the provinces for their cooperation in signing the National Fiscal Pact and acknowledged their efforts in achieving mandatory fiscal surpluses to support Pakistan’s compliance with International Monetary Fund (IMF) requirements.
Aurangzeb noted that despite external threats and natural disasters, the federal government and provinces had demonstrated “unity, resilience and determination”, and expressed hope that the same spirit would guide the 11th NFC deliberations.
He underscored the critical role of the NFC in ensuring equitable distribution of financial resources, promoting fiscal sustainability and supporting long-term economic growth.
The Finance minister voiced confidence that the commission would engage in meaningful and inclusive dialogue aimed at delivering a fair and forward-looking NFC Award.
Meanwhile, Chief Minister of Sindh Syed Murad Ali Shah appreciated the notification of the 11th NFC in August 2025 after the expiry of the 10th NFC Award in July 2025.
He maintained that Sindh had an unwavering commitment to the prosperity, unity and progress of Pakistan. He further underscored that consensus could only be developed by deliberating within the forum of the National Finance Commission and that the commission should adhere to its mandate in order to move forward.
Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi expressed his gratitude to the federal government for holding the meeting and expressed that a strong federation and strong provinces would guarantee a strong and united Pakistan.
“He underscored the sacrifices of the people of Khyber Pakhtunkhwa province made in the War on Terror, which unfortunately has resurfaced again,” the statement read.
Afridi further expressed the hope that the 11th National Finance Commission would address the “ultra vires of the 7th NFC since June 2018” and include the population and other variables of the Newly Merged Districts in KP and update the share of the province to give them due representation and requested the other provinces for their positive response in this matter.
Balochistan Finance Minister Mir Shoaib Nosherwani stated that CM Balochistan had instructed that there should be consensus and that cooperation of Balochistan with the federation and the provinces had always been there and going forward, “Balochistan will continue this path of cooperation and consensus”.
He underscored the support of Balochistan in strengthening the federation through quoting examples of Sui Gas, Saindak and Reqo Diq projects.
During the meeting, the participants held general discussion on the strategy for the 11th NFC Award deliberations, followed by detailed presentations from all provinces – Balochistan, Punjab, Khyber Pakhtunkhwa and Sindh – as well as the federal government, outlining their respective fiscal positions and priorities.
“These exchanges contributed to developing a shared understanding of the economic landscape and the challenges that lie ahead.”
The commission resolved to continue its work through a structured series of meetings and technical consultations in the coming months, with the shared objective of achieving an equitable and sustainable NFC Award for the people of Pakistan.
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