Centre Urges Provinces to Shoulder Major Costs at 1st NFC Meeting

The first meeting of the Eleventh National Finance Commission opened with the federal government asking provinces to take on a larger share of major national expenses, including higher education and social protection programmes. Officials from the centre told provinces that even after transfers from the divisible pool, the federal government still pays almost 15 percent more to cover essential services. They said provinces should increase their own revenue so they can manage a greater part of their expenses. The federation also discussed handing over programmes such as higher education and the Benazir Income Support Programme to provincial control. Federal officials argued that these responsibilities should now shift to the provinces for better financial management. There was agreement between the centre and all provinces on recognising the merged districts of Khyber Pakhtunkhwa within the NFC framework. KP officials said the seventh NFC Award had become ineffective after the Eighteenth Amendment. Sindh, however, objected to parts of the NFC terms of reference. Sindh argued that under NFC rules, the federal government cannot question the province on how it uses its funds. The centre replied that if Sindh believes the TORs are unconstitutional, it may approach the president. Despite the disagreement, the officials said all provinces agreed to continue cooperating in the NFC process. Punjab assured the federation of full support during the discussions. The meeting ended with an understanding that further sessions will continue in the coming weeks as work begins on shaping the new NFC Award.