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NFC: what K-P wants

70 0
12.05.2026

The National Finance Commission (NFC) is the fiscal spine of Pakistan's federation. It is through this constitutional mechanism that resources are distributed among the federating units, ensuring balance, equity and cohesion. Yet, for Khyber-Pakhtunkhwa, the NFC today represents not equilibrium, but a growing imbalance - one that raises fundamental questions about constitutional compliance.

At the centre of this debate lies Article 160 of the Constitution, which mandates that the NFC Award be revisited every five years. This requirement reflects the dynamic nature of federalism. However, the continued operation of the 7th NFC Award - well beyond its constitutional life - has effectively frozen fiscal arrangements in time. As the Foundational Note on K-P's NFC Position observes, such delay undermines the very purpose of periodic adjustment.

The merger of the erstwhile FATA with K-P under the 25th Constitutional Amendment was a historic national decision. It expanded the province's population by over 6.5 million people and added vast underdeveloped regions requiring immediate investment in governance, infrastructure and security.

Yet, the NFC formula was never updated to reflect this transformation. The foundational note clearly states that population, area and other variables of........

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