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Centre and Provinces Open 11th NFC Talks with Pledge of ‘Transparent Dialogue’
Finance Minister Aurangzeb opens 11th NFC talks, assuring provinces that the Centre is “here to listen” as negotiations begin on a new resource-sharing award.
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by Muhammad Hashir
2025-12-04
Centre and Provinces Open 11th NFC Talks with Pledge of ‘Transparent Dialogue’

Finance Minister Muhammad Aurangzeb on Thursday inaugurated the first meeting of the 11th National Finance Commission (NFC), assuring provinces that the federal government was “here to listen” as negotiations began on a new formula for sharing federal divisible resources.

The meeting, held at the Finance Division in Islamabad, marked the formal start of discussions on the long-awaited 11th NFC Award—coming months after the expiry of the 10th NFC Award in July.

Images shared by state broadcaster PTV showed the finance minister welcoming Sindh Chief Minister Murad Ali Shah and Khyber Pakhtunkhwa Chief Minister Sohail Afridi as the session began.

‘We are here with an open mind’

In his opening remarks, Aurangzeb stressed the constitutional significance of the NFC under Article 160, saying the forum was central to “equitable distribution of resources, fiscal stability and sustainable economic growth.”

He said the Centre wanted the 11th NFC process to begin “without any delay,” echoing Prime Minister Shehbaz Sharif’s desire to move quickly. However, recent floods in Punjab, KP and Sindh had forced postponements.

Aurangzeb emphasised that speculation surrounding the award could only be countered through a “sincere and transparent dialogue,” assuring the provinces that the government approached the talks “with an open mind and without prejudice.”

“Our first priority is to listen to each other,” he said. “We will move forward with unity, cooperation and mutual respect.”

The minister also praised the provinces for achieving required budgetary surpluses and supporting the implementation of the IMF programme. He further noted that the signing of the National Fiscal Pact among provinces reflected a shared commitment to federal harmony.

He cited “unprecedented threats” faced by the country this year—including the May conflict with India and devastating floods—adding that the federation must remain united through the NFC process.

Committees to be formed, next meeting in January

It was decided that five to six working groups would be established to discuss subject-specific issues. The next meeting is expected between January 7 and 15.

The 11th NFC, constituted on August 22, comprises the four provincial finance ministers and non-statutory members Dr Asad Sayeed (Sindh), Mehfooz Ali Khan (Balochistan), Nasir Mehmood Khosa (Punjab) and Dr Musharraf Rasool Cyan (KP).

Sindh, KP share their positions

Speaking to the media after the meeting, Sindh Chief Minister Murad Ali Shah said the session was held in a “cordial environment,” with both the Centre and provinces outlining their fiscal positions. He confirmed that thematic groups would be formed in the coming days.

KP Chief Minister Sohail Afridi said his province had raised concerns over funding for the merged ex-Fata districts, arguing that their exclusion from the previous NFC formula was “unconstitutional.”

He said that after the 25th Amendment, ex-Fata had been fully merged into KP, yet “funds were distributed among three-and-a-half provinces,” leaving the tribal districts short of their constitutional share.

Afridi said participants “agreed in principle” with KP’s stance, adding that the issue would be pursued in the coming NFC meetings.

KP highlights unpaid funds for ex-Fata

Ahead of the NFC session, Afridi met senior PTI leaders to finalise KP’s position. The KP government said in a post on X that ex-Fata was entitled to Rs1,375 billion, of which only Rs168bn had been released. A promised Rs100bn annually for the merged areas — now totalling Rs700bn — also remains unmet.

Afridi termed the delay a “violation of Article 160,” vowing to protect KP’s “financial and constitutional rights.”

Participants included PTI leaders Asad Qaiser, Minister Meena Khan Afridi, Finance Adviser Muzammil Aslam and others.

 
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