President Asif Ali Zardari on Saturday approved a change in the constitution of the recently formed 11th National Finance Commission (NFC) following a revision in nominations by the Balochistan government.
According to an official statement from the President Secretariat Press Wing, the amendment was necessitated after Balochistan withdrew its earlier recommendation and instead nominated Mahfooz Ali Khan as its non-ex-officio member. The president gave his approval to the revised nomination, thereby superseding the earlier decision.
This development comes shortly after President Zardari formally constituted the 11th NFC to address crucial fiscal issues between the federation and the provinces. The Finance Division had issued a notification on Friday announcing the nine-member commission, while also dissolving the 10th NFC, which had been established in July 2020.
The new commission has been formed with updated terms of reference (ToRs), also forwarded to the president for approval in connection with the upcoming NFC Award.
As per the notification, the federal finance minister will chair the commission, and the finance ministers of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan will serve as ex-officio members.
Each province has additionally nominated one expert to represent its fiscal interests. Punjab will be represented by Nasir Mahmood Khosa, Sindh by Dr. Asad Sayeed, Khyber Pakhtunkhwa by Dr. Musharraf Rasool Cyan, and Balochistan by Farman Ullah, alongside the newly nominated Mahfooz Ali Khan.
The NFC holds a pivotal role in Pakistan’s financial framework as it is responsible for recommending the distribution of the net proceeds of federally collected taxes between the federation and the provinces. It also examines grants-in-aid to provinces, borrowing powers of federal and provincial governments, and the financial responsibilities associated with national and trans-provincial projects.
By addressing these matters, the NFC seeks to ensure a fair and sustainable fiscal balance across the federation, which remains essential for strengthening inter-provincial harmony and promoting economic stability.
