The 10th National Finance Commission (NFC) expired on July 21, and the NFC secretariat in the Finance Ministry is in the process of forming a new commission. There is no notification yet of the representatives of the four provinces for the 11th NFC.

The 7th NFC Award has now been in effect for nearly 15 years — far beyond its five-year tenure. The president of Pakistan has extended the award every year due to a disagreement between the provinces and the Centre over the new formula.

The 18th Amendment provided constitutional protection to the share of the federating units, stipulating that a sub-federation’s share in any future award must not be less than its share in the previous award. In the current political situation, any constitutional amendment seems a remote possibility.

It appears now that unanimous agreement among five stakeholders can only be reached based on give and take and rights and responsibilities anchored on democratic participatory federalism.

Despite constitutional obligations, central and provincial governments have not fully empowered local administrations to meet the people’s needs

A fresh NFC award has become an imperative to ensure that fiscal federalism remains dynamic, equitable, and responsive to the country’s evolving development landscape while protecting provincial rights, says Planning Minister Ahsan........

© Dawn Business