Khyber Pakhtunkhwa govt to establish Provincial Finance Commission

PESHAWAR: The Khyber Pakhtunkhwa government has approved the formation of a Provincial Finance Commission (PFC) to oversee the disbursement of funds to local governments, mirroring the structure of the National Finance Commission (NFC).

The establishment of the PFC was proposed in a summary by the Finance Department and subsequently approved by the Provincial Cabinet. The commission will be chaired by the provincial Finance Minister, with the local government minister serving as co-chairman.

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The commission will consist of 13 members, including key provincial officials: the finance secretary, who will act as both secretary and member of the commission, the secretary of local government, the secretary of development and planning, and the secretary of law. Additionally, the commission will include two members from the Provincial Assembly — one from the opposition and one from the government benches.

Furthermore, the PFC will feature five Tehsil Chairmen representing various regions: tribal areas, central districts, Malakand, Hazara, and southern districts. Each region will elect one Tehsil Chairman to the commission.

The main responsibility of the PFC will be to approve the distribution of development funds according to a set formula.

As outlined in the approved summary, the funds will be allocated based on three criteria: 60 per cent according to population, 20 per cent based on the level of backwardness, and 20 per cent considering the lack of infrastructure.

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This strategic move aims to ensure a more equitable and transparent distribution of funds, addressing the diverse needs of various regions within the province.