ISLAMABAD: President Asif Ali Zardari on Saturday approved a constitutional change concerning the 11th National Finance Commission (NFC). The development came after the Government of Balochistan revised its nomination for the non ex-officio member position. The President Secretariat Press Wing released a statement confirming that the provincial government recommended Mahfooz Ali Khan for the role, replacing the earlier nominee. The president accorded approval to this revision, effectively superseding the prior decision.

Background of the 11th NFC Formation

Just a week earlier, President Zardari had formally constituted the 11th NFC to deal with vital fiscal and financial matters between the federation and the provinces. The announcement came through a notification issued by the Finance Division, which also marked the dissolution of the 10th NFC established in July 2020. The constitution of the new commission represents a continuation of Pakistan’s federal financial system, which periodically reviews and renegotiates the distribution of resources between the center and the provinces to ensure fiscal equity.

Composition of the 11th NFC

The 11th NFC comprises nine members in total, with the Federal Finance Minister appointed as the chairperson. The finance ministers of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan have been included as ex-officio members. In addition, each province has nominated one financial expert to represent its interests and contribute specialized knowledge to the deliberations.

Punjab has nominated Nasir Mahmood Khosa, an experienced bureaucrat, while Sindh has put forward Dr. Asad Sayeed, an economist. Dr. Musharraf Rasool Cyan will represent Khyber Pakhtunkhwa, and Farman Ullah was earlier nominated by Balochistan before the latest revision that now places Mahfooz Ali Khan as the province’s representative. The inclusion of such experts underscores the intent to bring balanced perspectives from both administrative and economic backgrounds.

Mandate and Responsibilities of the NFC

The NFC is tasked with a constitutional mandate of reviewing and recommending the distribution of net proceeds from federally collected taxes among the federation and the provinces. This mechanism ensures that the provinces receive their rightful share of resources, enabling them to manage local development and administrative responsibilities.

In addition, the commission is responsible for advising on grants-in-aid to provinces to address disparities, as well as recommending borrowing powers for both federal and provincial governments. Such powers are essential in balancing fiscal independence with overall national stability.

Broader Scope of Deliberations

The terms of reference for the 11th NFC extend beyond traditional revenue-sharing discussions. The commission will also consider the financial implications of national projects and trans-provincial initiatives. This includes infrastructural ventures and developmental programs that cut across provincial boundaries, requiring a shared approach in financing and execution.

Furthermore, the NFC may deliberate on any other fiscal matter referred to it by the president. This gives the commission flexibility to address emerging financial challenges, ensuring its role remains relevant in Pakistan’s evolving economic context.

Significance of the Change

The revision in Balochistan’s representation highlights the importance provinces place on effective participation in the NFC. By nominating Mahfooz Ali Khan, Balochistan aims to ensure that its financial concerns are strongly voiced during negotiations. Given the province’s unique economic challenges and its need for greater development resources, representation in the NFC holds critical value.

As the 11th NFC begins its work, the inclusion of seasoned experts and provincial representatives will play a key role in shaping recommendations that balance national cohesion with provincial autonomy. The outcome of its deliberations will directly influence Pakistan’s fiscal framework for years to come.