Pakistan’s National Finance Commission (NFC) has faced criticism for its lack of progress in revising the formula for resource distribution between the federation and provinces. Despite the commission’s formation of eight technical working groups for this purpose, only two have met once each, while the remaining six have not convened since December, as reported by the Karachi-based Business Recorder.
According to local media reports, delays have been attributed to the busy schedules of the Finance Minister, Finance Secretary, and provincial Finance Ministers who chair most groups. However, the report questions the absence of mechanisms to delegate responsibilities to junior officials or initiate meetings to address critical unresolved issues.
The NFC’s inaction has been described as a serious neglect of duty, especially considering the urgency of decisions related to fiscal stability, inter-governmental trust, and effective governance. The delay in addressing complex matters such as horizontal distribution formula revision and tribal district share complexities is deemed unacceptable.
The commission’s inefficiency is exemplified by the stalled progress of groups like the one examining the merger of former FATA into Khyber-Pakhtunkhwa. Despite requests for detailed workings from the federal Finance Secretary, essential information remains pending, hindering further discussions.
Another group tasked with reviewing the divisible tax pool under the Finance Minister has also made limited progress, failing to recommend necessary additions or exclusions. The federal government’s sluggishness on this issue, despite complaints about fiscal constraints and provincial dominance in revenue sharing, has been highlighted as a concerning trend.
