Finance Minister Muhammad Aurangzeb on Thursday said at the inaugural meeting of the 11th National Finance Commission (NFC) that the Center was there to hear the provinces’ stand.
state broadcaster pay television Images shared from the meeting on social media platform X, which showed Aurangzeb greeting Sindh Chief Minister Murad Ali Shah and Khyber Pakhtunkhwa Chief Minister Sohail Afridi.
He said the meeting was held at the Finance Division.
According to a brochure issued by the Ministry of Finance, he made these comments in his opening speech. The minister chaired the meeting as negotiations for sharing divisible federal resources between the Center and the provinces formally began.
The statement notes that at the beginning of the meeting, the minister stressed that it had provided an opportunity for mutual cooperation, respecting constitutional responsibility.
He noted that the forum was established under Article 150 of the Constitution, adding that the 10th NFC award expired in July this year.
“In this context, the importance of this meeting increases even more,” he said. He said the federal government was of the view that the 11th meeting of the NFC would be convened “without delay”.
He noted that Prime Minister Shehbaz Sharif himself had stated that he wanted to hold the meeting as soon as possible.
“The provinces had also expressed their determination to fulfill this constitutional responsibility,” he said. The minister added that, however, it had to be postponed due to floods in Punjab, Khyber Pakhtunkhwa and Sindh.
He further said that the best solution to speculation and concerns about the NFC was a “sincere and transparent” dialogue.
“We are here today with an open mind and without any prejudice,” he said, stressing that “our first priority is to listen to each other.” He assured participants that the federal government was “here to listen to you.”
The minister expressed optimism that the provinces “will move forward in the spirit of cooperation.”
He noted that the “signing of the National Fiscal Pact by the provinces” was very significant.
It is a “testament to our shared commitment and our ability to work together in the national interest,” the finance minister said.
He appreciated the cooperation of the provinces to “achieve the necessary surpluses and ensure the implementation of the IMF program.”
The Finance Minister recalled that the country faced “unprecedented threats” this year, citing the May conflict with India and the recent floods.
“In these difficult times, we stood together as a strong federation,” he said, calling for the “same spirit” in the 11th NFC Award process.
“The role of NFC is critical for equitable distribution of resources, fiscal stability and sustainable economic growth in the country,” Aurangzeb said.
He noted that the forum provided an “opportunity to bring together the best minds and advance the process of shared thinking and mutual learning.”
He hoped discussions would continue in the coming weeks and urged members to “move forward with full commitment.”
“We will listen to each other and move forward in a spirit of unity, cooperation and mutual respect,” the minister said.
“Our goal is to successfully conclude the 11th NFC Award process,” the minister said.
At the meeting it was decided that five or six groups would be formed on different topics and the next meeting would be convened between January 7 and 15.
The eleventh NFC was constituted on August 22 to present a new award for sharing divisible federal resources between the Center and the provinces. Its first meeting, initially called for August 27, was postponed repeatedly.
The terms of reference, set out in Clause 2 of Article 160, require the 11th NFC to distribute between the federal government and the provinces the net revenues of five main tax categories. These include income taxes, including capital value tax and corporation tax, but excluding income taxes consisting of remuneration paid from the Federal Consolidated Fund.
All four provincial finance ministers and four non-statutory members – Dr Asad Sayeed (Sindh), Mehfooz Ali Khan (Balochistan), Nasir Mehmood Khosa (Punjab) and Dr Musharraf Rasool Cyan (Khyber Pakhtunkhwa) – are members of the NFC.
Murad and Afridi share details of the meeting
Provincial chief executives Murad and Afridi spoke separately to the media after the meeting.
Murad said today’s meeting took place in a cordial atmosphere, where the Center and the provinces detailed their fiscal positions.
He also confirmed that groups will be formed for different topics. “Discussions will be held about this and, God willing, they will be formed next week.”
Meanwhile, Afridi said that at the meeting “we presented the case on behalf of the people of KP.”
He recalled that after the 25th Constitutional Amendment, the federally administered tribal areas (Fata) were administratively merged with the province.
“So they have been part of KP since 2018,” he said, further stating that according to Article 160, which deals with the NFC issue, the funds were to be distributed among four provinces.
“But they were distributed among three and a half provinces. The tribal areas did not get their share,” he alleged, adding that they had raised the issue during today’s meeting. “We raised the point that this was unconstitutional.” […]. After stating the position, all participants agreed in principle with it,” he said.
Afridi said the next NFC meeting was expected in mid-January and that “we will take this further to mid-January.”
KP CM holds consultations ahead of NFC
Ahead of the meeting, KP CM Afridi last night also held consultations in preparation for the inaugural meeting in the presence of senior PTI leaders, where it was decided to “fully and effectively” defend KP’s interests, with special emphasis on the “financial merger of Fata”.
Detailing the meeting in a post on
During the meeting, the prime minister was informed that “at the time of merger of erstwhile Fata, a promise was made to provide Rs 100 billion annually, which now amounts to Rs 700 billion.”
It was further discussed that of the total amount, the Center had only released Rs 168 billion while Rs 531.9 billion remained pending.
CM Afridi termed the delay in issuance of funds as a “violation of Article 160” of the Constitution and vowed to protect the “financial and constitutional rights” of the province.
Among the participants in the meeting were PTI’s Asad Qaiser, provincial minister Meena Khan Afridi, financial advisor Muzammil Aslam and others.
