KP Government Proposes 7th NFC Award Review to FCC – Pakistan

PESHAWAR: Adviser to KP Chief Minister on Finance Muzzammil Aslam said that the Khyber Pakhtunkhwa government has formally approached the Federal Constitutional Court (FCC) to look into the award of the seventh National Finance Commission (NFC).

Addressing a press conference, he said that all objections previously raised by the Court against the petition had been removed and the matter had now been officially numbered and fixed for hearing.

Muzzammil Aslam said the seventh NFC award has remained in force since 2010, despite significant constitutional, administrative and financial changes since then.

He said the provincial government requested the Constitutional Court to interpret Article 160 of the Constitution and determine whether Khyber Pakhtunkhwa’s share in the NFC should be revised in light of the 25th Constitutional Amendment, which increased the population, geographical area and constitutional responsibilities of the province following the merger of tribal districts.

He added that the continued extension of the seventh NFC award is inconsistent with the spirit of the Constitution and requires constitutional correction.

He further said that updating the seventh NFC award as per the constitutional requirements would also pave the way for the formulation of the eleventh NFC award.

Referring to the recent National Economic Council (NEC) meeting, the financial advisor said an impression had been created that the provinces had unconditionally committed to provide Rs1.1 trillion to the federal government. However, he clarified that Khyber Pakhtunkhwa had clearly stated that it should first be allowed to consult Pakistan Tehreek-e-Insaf (PTI) founding chairman Imran Khan, just like other political parties consult their respective leaders.

He said this position had been misrepresented in the media and no allocation for such funding had been made in the provincial budget.

Muzzammil Aslam said that out of the Rs1.1 trillion discussed by the federal government, a portion is for projects of national strategic importance. However, no clear mechanism or formula has yet been presented regarding its distribution. He wondered how these funds would be organized if the Federal Board of Revenue (FBR) failed to meet its revenue target, noting that no clarification had been provided on the issue.

He revealed that during the NEC meeting, the Prime Minister of Pakistan assured the participants that if a consensus on the eleventh NFC award was not reached by December 2026, the federal government would advise the President of Pakistan to introduce necessary constitutional amendments to the seventh NFC award through a presidential order. He said this commitment was formally recorded in the official minutes of the NEC meeting.

The financial advisor said that this development is a result of the Khyber Pakhtunkhwa government’s sustained efforts over the last two years. He attributed this achievement to current Chief Minister Suhail Afridi, former Chief Minister Ali Amin Gandapur and the entire provincial government.

He further said that the NEC minutes also provide that the Common Interest Council (CCI) meetings will now be held regularly every three months. He pointed out that the last meeting of the ICC was held in May 2025 and stressed that regular meetings are essential to ensure speedy resolution of outstanding constitutional and administrative issues between the federation and the provinces.

Muzzammil Aslam said Pakistan was already facing wheat shortage just four months after the wheat harvest, describing it as an unprecedented situation in the country’s history. He stressed that the underlying causes of the crisis must be carefully examined and effective corrective measures taken without delay.

Commercial Copyright Recorder, 2026

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