Senate panel likely to revisit NFC Award dispute

The issue of National Finance Commission (NFC) Award has resurfaced, with the Senate Standing Committee on Finance expected to convene a meeting next week to address provincial concerns over resource distribution, sources have revealed.

According to sources, the committee has decided to summon finance ministers from all four provinces to discuss grievances related to the NFC Award. The move comes amid rising tensions between the federal and provincial governments over the allocation of funds and the delay in a new NFC formula.

Sources maintained that the federal government is reluctant to provide funds for departments that have been devolved to the provinces. The Khyber-Pakhtunkhwa (K-P) government, in particular, has raised concerns, stating that its population has significantly increased following the merger of the former Fata districts, yet this demographic shift has not been reflected in resource allocation.

K-P Chief Minister Ali Amin Gandapur has reportedly written a letter to the president, expressing concern over the province's exclusion from a fair share in the NFC award due to outdated population data.

The K-P government adopted the stance that under the NFC, equitable distribution of resources after every five years, was a constitutional requirement. However, the current NFC formula, established in 2009, has been extended over the past 15 years without significant revisions.

Under the existing NFC award, 57.5% of divisible resources are allocated to the provinces, while the federal government retains 42.5%.