The federal government has notified eight sub-committees under the 11th NFC Award, moving forward after receiving legal backing from the attorney general. The decision follows objections raised by Sindh over the scope of the National Finance Commission.

Officials said the new panels will address major fiscal disputes between the federation and provinces. A key committee will review national debt utilization and the transfer of federal expenditures to provinces.

Provinces getting less than due share

The move comes as fiscal expert Dr. Hafiz Pasha highlighted a sharp gap in provincial revenue shares. Speaking at a seminar hosted by the Social Policy and Development Centre, he said provinces received only 45.8% of the divisible pool last year. The Constitution mandates a 57.5% share. He blamed deductions linked to petroleum levies and cash surpluses.

Eight panels to shape 11th NFC Award

According to the finance ministry, the eight sub-groups will work on critical areas. These include the composition of the divisible pool, the distribution formula between federation and provinces, and horizontal distribution among provinces.

Other panels will focus on expense sharing, tax-to-GDP ratio, straight transfers, FATA merger adjustments, and national debt review. The expense-sharing group was formed after Sindh’s objections and a supportive legal opinion.

Federal and provincial representation

Each committee includes federal and provincial finance ministers, finance secretaries, and senior officials. Experts may also be co-opted where required.

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Legal and political context

Sindh had argued that expense sharing fell outside the NFC mandate. The attorney general’s opinion supported the federal government’s authority to proceed.

The 11th NFC Award, the first major review in 15 years, is expected to redefine fiscal relations and address long-running disputes over resource allocation.