Finance Division pledges support to KP on NFC allocations

February 3, 2026 (MLN): The Federal Finance Minister assured the Khyber Pakhtunkhwa (KP) delegation of the Finance Division’s full support in pursuing and facilitating their rightful claims for allocations under the National Finance Commission (NFC) and other related fiscal heads, in line with applicable rules, agreed frameworks, and due process.

The assurance came during a meeting between Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and Mr Muzamil Aslam, Advisor to the Chief Minister for Finance, Government of Khyber Pakhtunkhwa, held at the Finance Division, according to the press release issued today. 

Discussions focused on a broad spectrum of fiscal and development matters, including the timely release of funds under key development heads for merged districts, pending obligations for rehabilitation and support of temporarily displaced persons, and the general framework of provincial entitlements and allocations.

The KP delegation emphasized the operational and development priorities in the merged districts, highlighting the need for predictable and timely fund releases to sustain ongoing schemes and address urgent requirements on the ground.

They also stressed pending commitments related to displaced families, urging streamlined coordination to ensure their resolution.

Senator Aurangzeb acknowledged the issues raised and reaffirmed the Federal Government’s commitment to cooperative federalism, constructive engagement with provinces, and smooth implementation of fiscal transfers.

He noted that effective coordination and timely reconciliation of accounts are critical for transparent releases and highlighted the government’s awareness of KP’s unique development and security-related challenges, particularly in the merged districts.

The meeting also reviewed ongoing work and consultations on NFC-related matters, including technical discussions and sub-group engagements aimed at reaching consensus on key issues.

Both sides agreed to maintain close coordination through formal forums and technical channels to prioritize outstanding matters, ensuring that fiscal arrangements and fund releases continue to support development objectives, service delivery, and stability.

The meeting concluded on a positive note, with a shared commitment to regular engagement and joint efforts toward the timely resolution of issues in the national interest.

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