ISLAMABAD: Even if the National Finance Commission (NFC) Award remains untouched today, it will have to be revised tomorrow if Pakistan is to be governed and financed sustainably, influential quarters have concluded.
According to informed official sources, this view is being discussed within policymaking circles and among even the ruling coalition partners as a move that cannot be ignored for too long.
It is said that the resource-sharing formula put in place after the 18th Constitutional Amendment has tilted fiscal powers so heavily towards the provinces that the federal government is increasingly finding it difficult to discharge its core responsibilities, including defence, debt servicing and national security.
The debate was also a part of the pre-budget 2026-27 discussions. The PMLN was inclined to do the needful but the PPP was unwilling to change the NFC share because of political fallouts for the party, particularly in Sindh.
However, in view of the keenness of influential circles, the PPP agreed for a subtle change in NFC share without formally touching it. The federal government announced in the 2026-27 budget that the provinces would provide a Rs1.035 trillion (Rs1,035 billion) grant to the Centre under Article 164 of the Constitution for defence requirements and to create a buffer against potential economic fallout from the Gulf conflict.
While Finance Minister Muhammad Aurangzeb insisted that the arrangement had nothing to do with the NFC and did not alter the constitutional distribution of resources, sources said the development has reinforced arguments within influential circles that the existing fiscal framework is unsustainable in the long run and would eventually require a formal review.
