More than five months after its formation, the 11th National Finance Commission (NFC) has failed to gain momentum, sparking concerns over delays in finalising a new revenue-sharing formula after a gap of over 15 years. The commission has yet to convene its second session, despite an earlier schedule between January 8 and January 15.

According to a report, most of the NFC’s eight technical working groups remain inactive. Only two groups have met so far, and even those have held just a single meeting, effectively slowing progress on the new NFC award.

The working group that moved the fastest was assigned to review the fiscal impact of the merger of former tribal areas into Khyber Pakhtunkhwa. Led by KP Finance Minister Muzammil Aslam, the group requested detailed calculations from the federal finance secretary on how ex-Fata allocations would affect provincial shares. Officials say further meetings could not be held due to the non-availability of those details.

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Another group, headed by Finance Minister Muhammad Aurangzeb, met once in late January to review divisible pool taxes. Discussions included whether certain taxes, such as customs duty, should be excluded from the divisible pool as international trade falls under federal jurisdiction.

Six other working groups, covering areas such as vertical and horizontal distribution, national debt, tax-to-GDP ratio, straight transfers and federal spending in provinces, have not met at all.

Federal officials attribute the delay to overseas engagements, while provinces cite the unavailability of federal finance authorities. The slow pace has revived fears that the 7th NFC award, which remained in force for 15 years instead of five, may once again be extended.