Federal Finance Minister Muhammad Aurangzeb opened the inaugural session of the 11th National Finance Commission (NFC) with a strong commitment to completing the award successfully through transparent, prejudice-free dialogue.

He urged provinces to work collectively, highlighting national unity during floods and tensions with India as proof of Pakistan’s resilience.

In his address, the finance minister said the first priority of the federal government is to “listen to each other with an open mind and without any prejudice.” He stressed that sincere dialogue is the “best antidote to speculation” surrounding the upcoming NFC Award.

Aurangzeb thanked provinces for supporting each other during the severe floods and amidst “extraordinary threats from India,” saying these challenges showed Pakistan’s strength as a united federation.

NFC’s constitutional role, national fiscal cooperation

Minister Aurangzeb underscored that the NFC plays a fundamental role in ensuring equitable resource distribution, fiscal stability, and sustainable economic growth. He noted that the forum, established under Article 160 of the Constitution, allows “the best government minds” to collaborate and learn from each other.

The inaugural meeting of the 11th NFC starts in the Finance Division, under chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb with all Members of the NFC attending the session pic.twitter.com/j0aykIAS1B
— Ministry of Finance, Government of Pakistan (@Financegovpk) December 4, 2025

He praised the provinces for signing the National Fiscal Pact, meeting mandatory surplus requirements, and supporting the IMF program, calling it a “testament to our shared commitment to the national interest.”

Aurangzeb reaffirmed: “Our goal is to successfully conclude the 11th NFC Award with unity, cooperation, and mutual respect.”

Provinces, federation agree to form 6–7 working groups

The meeting concluded with a decision to form six to seven working groups, including:

A group on distribution of resources between federation and provinces
A group on provincial tax collection
A group on merger of former FATA with KP and determination of related funds
A legal group to seek the opinion of the Attorney General and Law Division

It was agreed that a separate group will oversee broader legal and financial questions impacting the award.

The next NFC meeting will take place on January 8 or 15.

Provinces term meeting constructive; no pressure, no talk of cuts

Sindh Chief Minister Murad Ali Shah, speaking to the media, said the meeting was held in a pleasant atmosphere and that it was only an initial discussion about the way forward. He reiterated Sindh’s stance that the NFC is a revenue forum, not an expenditure forum, adding that the Finance Ministry will soon share a joint statement with all provinces.

KP Finance Advisor Muzammil Aslam said all participants were heard without pressure, as the provinces agreed to move forward together. He further said larger provinces supported smaller ones.

“There was no talk of reducing provincial shares; such claims were speculation.” He confirmed that groups will decide different issues and that one of them will specifically address the financial integration of former FATA.

Federal agencies share internal positions

Sources revealed that Sindh refused to provide expenditure details to the federation, adding that the FBR opposed giving 5% of tax collections directly to provinces. They also said that the federal government has not yet proposed any cuts to provincial funds.

Minister Aurangzeb reaffirmed that meaningful discussions will continue “in the coming weeks and months”, expressing hope that all members will show full commitment to an inclusive process.

“We will move forward with unity, cooperation, mutual respect, and the spirit of listening,” he stated.