11th NFC meeting concludes with decision to form working groups

ISLAMABAD
The 11th National Finance Commission (NFC) meeting in Islamabad concluded on Thursday with a decision to form six to seven working groups to advance discussions on fiscal matters.
The maiden NFC meeting, chaired by Finance Minister Muhammad Aurangzeb, was attended by the chief ministers of Sindh and Khyber Pakhtunkhwa, who participated in their capacity as provincial finance ministers, while Punjab and Balochistan were represented by their respective finance ministers.
Adviser to KP CM on Finance, Muzzammil Aslam, also joined the meeting alongside the CM Afridi. Federal Board of Revenue (FBR) Chairman Rashid Langrial was also in attendance, along with private members from all four provinces.
Sources said that the next sitting of the NFC is expected to take place on January 8 or 15. The sources said that working groups will examine key financial issues, including a dedicated group for the former FATA region, which will look into how the merged districts can be fully integrated into the federal fiscal framework.
After the meeting, Sindh Chief Minister Murad Ali Shah briefly spoke to the media and said: “It has been decided that groups will be formed which will take financial matters ahead.” Speaking to the media, Muzzammil Aslam termed the meeting as constructive. “The proposal is to form separate groups that will settle different matters,” he said, adding that six to seven groups will be formed, and above them, there will be an umbrella group.
He confirmed that one of the groups would specifically address the fiscal incorporation of the former FATA districts. “There is a working group on [ex] FATA to decide how it should be included in the financial structure,” he said.
He went on to say that the meeting took place in a positive environment. No one was pressured [during the meeting] and everyone’s views were heard.”
Muzzammil also clarified that no proposal was discussed regarding a reduction in the provinces’ share under the NFC Award.
Meanwhile, speaking during the 11th NFC session, FinMin Aurangzed described the inaugural meeting as an important moment of constitutional responsibility and mutual cooperation, adding that the NFC forum was established under Article 150 of the Constitution. He noted that the 10th NFC Award ended on 21 July 2025.
Aurangzeb emphasised that the federal government was committed to convening the 11th NFC’s opening session without delay. “The prime minister personally took a deep interest in ensuring this meeting was held as early as possible,” he said.
He explained that the session had previously been postponed due to the devastating floods in Punjab, Khyber Pakhtunkhwa and Sindh. Addressing speculation surrounding the NFC, he said: “The solution to concerns and ambiguities lies in sincere and transparent dialogue.”
Aurangzeb further said: “We are here with open minds and without bias. Our first priority is to listen to one another. The federal government is here to hear the provinces’ position.”
He expressed hope that the provinces would move forward with a spirit of constructive cooperation, praising them for signing the National Fiscal Pact, which he described as evidence of our shared commitment and ability to work together in the national interest.
Aurangzeb acknowledged provincial cooperation in achieving mandatory surpluses and implementing the IMF programme. Recalling national challenges, he said: “This year the country faced extraordinary threats from India and severe floods, yet we stood united as a strong federation.”
“This is the spirit we wish to preserve throughout the process of the 11th NFC Award,” he added.