Key Meeting on Pakistan’s Revenue Distribution Formula Postponed Once Again

The federal government has postponed the proposed meeting of the 11th National Finance Commission (NFC), which was scheduled for November 18th. Finance Ministry sources told ProPakistani that the proposed NFC session was part of ongoing efforts to review the existing resource-sharing mechanism, which determines how federal tax revenues are divided among provinces. This follows the disagreement between provinces and the centre on the meeting date and agenda for revising the resource distribution formula between the federation and provinces. The ministry had earlier circulated the proposed date to all provincial governments for feedback, marking the second round of consultation on the matter. Officials confirmed that no NFC meeting will take place on November 18, adding that a new date will be announced later after further coordination with provincial stakeholders. Sources said the Ministry of Finance had earlier proposed August 29 and November 10 for the meeting, but both plans were postponed—first due to flood-related disruptions at Sindh’s request, and later because of scheduling issues. The 11th National Finance Commission includes the finance ministers of all four provinces, along with one economic expert from each province, representing a broad consultative forum to decide fiscal arrangements under the Constitution. The federal notification for the new NFC was issued on August 22, 2025, alongside the terms of references (TORs) for revising the resource allocation framework. Officials said discussions under the new NFC will focus on updating the formula used for vertical (federal-provincial) and horizontal (inter-provincial) distribution of resources, in light of changing economic conditions, development needs, and revenue capacities. The Finance Ministry has assured that a revised schedule for the NFC meeting will be shared soon to resume consultations aimed at achieving a fair and updated financial framework for the federation and its provinces.