Revised NFC award urged amid growing fiscal needs

Stakeholders advocate for incorporating ex-FATA's 6.6% share into KP's existing 14.6% allocation.

By News Desk On Oct 31, 2024

M irshad ullah

PESHAWAR: In a unified call to action, political parties and civil society organizations (CSOs) in Khyber Pakhtunkhwa have demanded a revised National Finance Commission (NFC) Award that addresses the province’s evolving fiscal requirements and rights.

The demand was made at a seminar held at the University of Peshawar, where stakeholders gathered to discuss Khyber Pakhtunkhwa’s rightful share in the NFC award process.

Prominent political called for higher financial allocation for Khyber Pakhtunkhwa to address the province’s unique needs following the integration of the former FATA region.

Panelists advocated for incorporating the ex-FATA’s 6.6% share into KP’s existing 14.6% allocation. There is a proposal to raise KP’s security budget from 1% to 3% to better manage ongoing law and order challenges.

Governor Faisal Karim Kundi emphasized the critical role of collaboration between academia and civil society in advocating for Khyber Pakhtunkhwa’s equitable share in the NFC Award. He encouraged political representatives to stand united, stressing that a cohesive approach would strengthen KP’s position in the NFC.

University of Peshawar Vice Chancellor Professor Dr. Muhammad Naeem Qazi commended the creation of the Development Insights Lab, expressing hope that it would aid in evidence-based policy-making.

The NFC Award is a series of planned economic programs in Pakistan enacted since 1951 to address financial imbalances and equally manage financial resources among the four provinces The current formula, however, has been criticized for not adequately addressing regional needs. The seminar featured insightful presentations on the evolution of the NFC Award and international best practices in resource distribution.

The seminar concluded with a strong call for an NFC Award revision that aligns with the needs and contributions of Khyber Pakhtunkhwa. This collaborative effort aims to secure KP’s rightful share in national resources, ensuring sustainable development and growth in the region.