Govt finally kicks off long-awaited 11th NFC talks

December 04, 2025 (MLN): The government has officially begun the long-awaited 11th National Finance Commission (NFC) discussions which is a crucial process that will decide how federal funds are shared with provinces at a time of tight budgets and post-flood recovery.

Chaired by Federal Finance Minister Senator Muhammad Aurangzeb, the inaugural session brought together provincial chief ministers, finance ministers, and key economic officials.

The minister stressed that transparent, constructive dialogue is essential for fair fiscal distribution, stability, and long-term economic planning, according to the meeting details shared by the Ministry of Finance through its official X account. 

The meeting follows the expiration of the 10th NFC Award in July and repeated setbacks caused by devastating floods across Punjab, Sindh, and KP.

Provinces have already played a vital role in supporting the National Fiscal Pact and maintaining required surpluses under the IMF program.

The meeting assumes added importance as the tenure of the 10th NFC award expired on July 21, 2025.

Minister Aurangzeb noted that the federal government prioritized convening the session without delay, with active support from Prime Minister and provincial governments, despite previous postponements caused by devastating floods in Punjab, Sindh, and Khyber Pakhtunkhwa.

During the session, the minister emphasized the NFC’s role in ensuring equitable resource allocation, fiscal stability, and sustainable economic development.

He highlighted provinces’ commitment to contributing to the National Fiscal Pact, securing mandatory surpluses, and supporting the ongoing IMF program.

“This forum allows for open dialogue and constructive engagement to address assumptions and concerns regarding the NFC,” he said.

The federal government said it will prioritize listening to provincial viewpoints and promoting cooperative decision-making, aiming for a transparent and inclusive award process.

The 11th NFC award is expected to influence federal and provincial budgets, development allocations, and fiscal policy planning across Pakistan’s provinces, particularly in the context of recovering from recent natural disasters and addressing emerging economic challenges.

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