President Zardari Constitutes 11th National Finance Commission

Islamabad | August 22, 2025 – President Asif Ali Zardari has formally constituted the 11th National Finance Commission (NFC) under Clause (1) of Article 160 of the Constitution, marking a key step towards a new financial award for resource distribution between the federation and provinces.

Composition of the Commission

• Chairman: Federal Finance Minister Senator Muhammad Aurangzeb.
• Provincial Finance Ministers: Representing Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan.
• Nominated Experts:
  • Punjab: Nasir Mahmood Khosa (replacing Tariq Bajwa)
  • Sindh: Dr. Asad Sayeed
  • Khyber Pakhtunkhwa: Dr. Musharraf Rasool Cyan
  • Balochistan: Farman Ullah (replacing Dr. Kaiser Bengali)

Mandate and Objectives

The NFC will recommend a fresh formula for:

• Distribution of federal tax revenues between federation and provinces.
• Grants-in-aid to provinces.
• Borrowing powers of federal and provincial governments.
• Sharing of costs on provincial subjects and national projects.
• Any other financial matter referred by the President.

Context and Importance

• The 7th NFC Award (2010) has governed financial distribution for over 15 years.
• The Constitution requires a new award every five years, but political consensus remained elusive.
• The 18th Amendment guarantees that no province will receive less than its previous share, complicating negotiations.

The formation of the 11th NFC is viewed as critical for addressing fiscal imbalances, ensuring fair resource distribution, and strengthening provincial financial autonomy.

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