President forms 11th National Finance Commission for revenue distribution

ISLAMABAD: President Asif Ali Zardari has constituted the much delayed 11th National Finance Commission under Article 160 of the Constitution for the distribution of federal divisible resources between the centre and the provinces after a hiatus of 15 years.

According to a notification shared on X by Adviser to Finance Minister, Khurram Schehzad, The notification said Finance Minister Muhammad Aurangzeb will serve as chairman of the commission.

Other members include the four provincial finance ministers; former bureaucrat Nasir Mahmood Khosa, representing Punjab; economist and researcher Asad Sayeed, representing Sindh; former bureaucrat Dr Musharraf Rasool Cyan, representing Khyber Pakhtunkhwa; and Farmanullah, representing Balochistan..

The NFC will be responsible for recommending the distribution of federal revenues, allocation of grants, borrowing powers, and cost-sharing mechanisms for national development projects.

The commission will recommend to the president how to distribute the “net proceeds of the taxes mentioned in clause (3) of Article 160 of the Constitution” between the federation and the provinces, the notification said.

These taxes include income tax (including corporation tax but excluding salaries paid out of the Federal Consolidated Fund); sales and purchase taxes on goods imported, exported, produced, manufactured or consumed; export duties on cotton and other duties specified by the president; excise duties as notified by the president; and any other taxes designated by the president.

In June, Prime Minister Shehbaz Sharif announced that a committee would be formed to review the NFC Award and a first meeting on the subject would be convened in August.

Addressing a Jirga in Peshawar, he had noted that KP Chief Minister Ali Amin Gandapur rightly pointed out that 15 years had passed since the last NFC Award was announced and that it was now due for review.

He announced that the committee would also take up Khyber Pakhtunkhwa’s share in the NFC Award.

The prime minister said that in the 2010 NFC Award, resources had been allocated to Khyber Pakhtunkhwa for its fight against terrorism.