President Approves Revisions to National Finance Commission

President Asif Ali Zardari sanctioned an amendment to the composition of the 11th National Finance Commission (NFC) on Saturday.

According to a statement released by the President Secretariat Press Wing, this modification was required after the Balochistan government adjusted its nomination, proposing Mahfooz Ali Khan as its non ex-officio member for the 11th NFC.

“The president granted approval to this nomination, thereby superseding the previous endorsement,” the statement added.

Earlier, President Zardari formally established the 11th NFC the previous week to tackle essential fiscal challenges concerning the federation and its provinces.

The commission, comprising nine members, was revealed through a notification by the Finance Division on Friday, which also resulted in the dissolution of the 10th NFC, initially formed in July 2020.

New terms of reference (ToRs) have also been suggested to the president concerning the upcoming NFC Award.

According to the notification, the finance minister will preside over the commission, with the finance ministers representing Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan serving as ex-officio members.

Each province has also designated an expert, bringing the total membership to nine. Nasir Mahmood Khosa will represent Punjab, Dr. Asad Sayeed will represent Sindh, Dr. Musharraf Rasool Cyan will represent Khyber Pakhtunkhwa, and Farman Ullah will represent Balochistan.

The NFC is charged with advising the president on the distribution of net earnings from federally collected taxes between the federation and the provinces, grants-in-aid to provinces, and the extent of borrowing powers for both the federal and provincial governments.

The commission will also deliberate on sharing financial obligations for national projects, inter-provincial initiatives, and additional fiscal concerns brought forth by the president.