Finance Ministry Rejects KP CM’s Claims, Confirms Timely NFC Transfers to Provinces
The Ministry of Finance announced Saturday that provincial shares under the National Finance Commission (NFC) Award are disbursed every two weeks, with “no pending liabilities” in this area.
This clarification followed Khyber Pakhtunkhwa Chief Minister Sohail Afridi’s Friday accusation that federal delays in NFC funds were hindering development in the merged tribal districts for the current fiscal year.
The ministry reaffirmed the federal government’s “ongoing dedication to prompt, transparent, and reliable financial flows” to KP under the NFC Award and other mechanisms.
Under the 7th NFC Award, KP receives 14.62% of the provincial portion of the divisible pool. Due to the province’s heavy role in the war on terror, it also gets an extra 1% from the undivided pool.
Originally set for five years, the 7th NFC framework persists amid stalled talks on the 8th, 9th, and 10th awards. “KP thus continues to get its full entitlement, plus the terror-related addition,” the ministry noted.
Provincial NFC shares are released biweekly with no arrears. It cited a recent Rs46.44 billion transfer to KP on December 17 as proof of steady compliance.
From July 2010 to November 2025, KP has received Rs5.867 trillion from the divisible pool, including Rs705 billion for war-on-terror impacts—acknowledging the province’s sacrifices.
Straight transfers to KP have also flowed without interruption: Rs482.78 billion from July 2010 to November 2025 via oil/gas royalties, gas surcharges, excise duties, and similar sources.
Beyond NFC, the Centre has provided extra aid for KP’s distinct challenges. Post-FATA merger, it has covered merged districts’ costs from its own NFC share—Rs704 billion since 2019.
An additional Rs117 billion has gone to KP over time for internally displaced persons. Despite devolution, federal PSDP funding for provincial projects totals Rs115 billion over 15 years.
Through Benazir Income Support Programme (BISP), Rs481.433 billion was disbursed in KP from FY2016 to FY2025 for cash transfers aiding vulnerable families.
The ministry pledged to refine NFC via broad consultations. At the 11th NFC’s first meeting on December 4, a sub-group was formed to address ex-FATA merger and divisible pool shares.
KP requested it, so the sub-group’s debut session is set for December 23, 2025, with KP’s finance minister as convener—showing a joint, open path to settle fiscal issues.
The Centre remains steadfast in fair resource sharing, fiscal federalism, and backing KP on security, displacement, and integration needs.
