Date set for long-delayed first sitting of 11th NFC

WEB DESK: After months of postponements, the federal government has finally scheduled the opening session of the 11th National Finance Commission (NFC) for December 4, marking the formal start of negotiations on how funds are shared between Islamabad and the provinces.

As per Dawn, invites issued to the four provinces say the maiden meeting, to be chaired by Finance Minister Muhammad Aurangzeb, will focus on setting the ground rules for the months ahead. The commission is expected to agree on a roadmap, create technical sub-groups and decide how future sessions will be organised across federal and provincial capitals.

Each province, along with the federal finance ministry, has been asked to give a brief presentation on its fiscal position, offering the commission an initial snapshot of competing demands and constraints.

The 11th NFC, formed on August 22, has already faced several delays, with planned sittings in August and November repeatedly pushed back due to provincial requests and scheduling issues at the federal level.

Under its mandate, the NFC will reassess how the proceeds from key federal taxes, including income tax, excise duties and levies on goods, are divided. It will also examine cost-sharing arrangements for national and cross-provincial projects, a matter the Centre wants revisited in light of rising spending on disaster response, health programmes and major infrastructure.

The federal government, encouraged by the IMF, has been advocating changes to the current population-heavy formula and a greater provincial contribution to shared national expenses. However, any alteration to provincial shares requires unanimous consent.

Prime Minister Shehbaz Sharif is expected to consult coalition partners ahead of the session, though he does not formally sit on the commission.

Earlier this month, PPP leader Syed Naveed Qamar had said they would not accept any changes in the NFC Award under the proposed 27th Amendment and revealed that Prime Minister Shehbaz Sharif had shared a draft with President Asif Ali Zardari during a meeting.

Inaugural session postponed due to floods

The inaugural session of the 11th National Finance Commission, scheduled for August 29, had been postponed due to severe flooding in Punjab and Sindh. Sindh requested the delay, prompting the deferment of discussions on the NFC Award, formation of sub-groups and future session timelines. President Asif Ali Zardari had approved the commission’s notification on August 22, naming the federal finance minister as chair and including provincial finance ministers and five nominated members. The nine-member body was constituted under Article 160(1). The review followed Prime Minister Shehbaz Sharif’s June announcement that the NFC Award needed an overdue update after 15 years.