President Zardari Forms 11th NFC to Finalize New Revenue-Sharing Award

The federal government Friday formally constituted the 11th National Finance Commission (NFC) under Article 160 of the Constitution, superseding the previous commission set up in July 2020.

According to a notification issued by the Finance Division, the Federal Minister for Finance will serve as Chairman of the Commission, while the Finance Ministers of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan have been appointed as members.

In addition, the President has nominated the following members from the provinces:

• Nasir Mahmood Khosa (Punjab)
• Asad Sayeed (Sindh)
• Musharraf Rasool Cyan (Khyber Pakhtunkhwa)
• Farman Ullah (Balochistan)

The Terms of Reference (ToRs) of the 11th NFC include making recommendations on:

• The distribution between the Federation and the Provinces of the net proceeds of the taxes mentioned in clause (3) of Article 160 of the Constitution
• The making of grants-in-aid by the federal government to the provincial governments;
• The exercise, by the federal government and the provincial governments, of the borrowing powers conferred by the Constitution; issues relating to sharing of financial expense incurred or to be incurred by the Federation in respect of subjects and matters falling within the domain of the provinces
• Issues relating to sharing of financial expense incurred or to be incurred by the Federation or the Provinces or both in respect of trans-provincial matters
• Issues relating to financial expense for national projects to be shared by the Federation and the Provinces; and
• Any other matter relating to finance referred to the Commission by the President

The Finance Division will provide secretariat support to the Commission under the Rules of Business, 1973.

The notification further stated that the 10th NFC, constituted in July 2020, now stands dissolved with immediate effect.