Pakistan sets up new finance commission amid calls to revisit revenue sharing with provinces

People stand outside the Parliament house in Islamabad on June 26, 2024. (AFP/File)
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Updated 22 August 2025
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Pakistan sets up new finance commission amid calls to revisit revenue sharing with provinces

  • Commission chaired by finance minister to advise president on distribution of federal taxes and grants
  • Seventh NFC Award still governs transfers 15 years on as disputes block consensus on new formula

ISLAMABAD: Pakistan on Friday constituted the 11th National Finance Commission (NFC) to determine how federally collected revenues are divided between the Center and the provinces, amid renewed calls to revisit the resource-sharing formula that has remained unchanged for 15 years.

The 7th NFC Award, introduced in 2010, has continued far beyond its original tenure, with successive governments extending it annually due to disagreements between Islamabad and the provinces over a new arrangement.

According to a Finance Division notification, the commission will be chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb and include the four provincial finance chiefs. It will also include one expert member from all four provinces.

In pursuance of Clause (1) of Article 160 of the Constitution of the Islamic Republic of Pakistan, and in supersession of its Notification No. S.R.O. 635(1)/ 2020 dated the 21st July, 2020, the President of Islamic Republic of Pakistan is pleased to constitute the 11th National Finance Commission (NFC) with immediate effect,” the notification said.

Specifying the terms of reference, it said the commission will make recommendations to the president on how to distribute the net proceeds of specific taxes between the federation and the provinces.

The commission is also mandated to advise on grants-in-aid to provinces, borrowing powers of the Center and provinces and cost-sharing of financial expenses for projects of national or trans-provincial scope.

Successive commissions after the 7th Award failed to produce a new formula because of disagreements between the Center and the provinces. The 10th NFC, constituted in 2020, was formally dissolved with immediate effect following Friday’s order.

Officials and political leaders have floated proposals in recent years to base transfers not only on population but also on new criteria such as education, health and climate resilience, pointing out this would better reflect development needs and incentivize performance.

The 18th constitutional amendment in April 2010 stipulates no province’s allocation in a future award can be less than what it received in the previous one, a protection that has previously made it difficult to reach consensus on resource distribution.


Qatar, Pakistan resolve to boost strategic, economic cooperation at Doha talks

Updated 24 February 2026
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Qatar, Pakistan resolve to boost strategic, economic cooperation at Doha talks

  • Both countries urge dialogue on Afghanistan amid renewed border tensions between Islamabad and Kabul
  • Discussions focus on bilateral trade and investment, energy, defense, manpower and labor and culture

ISLAMABAD: Pakistan and Qatar on Tuesday agreed to deepen their strategic and economic cooperation during high-level talks between Prime Minister Shehbaz Sharif and his Qatari counterpart Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Sharif’s office said.

Sharif visited Qatar along with a high-level delegation on the invitation of Qatari emir Sheikh Tamim bin Hamad Al Thani. The Pakistani premier also held meetings with Qatar’s trade and defense ministers to discuss cooperation in various domains.

The visit came at a time when Pakistan is seeking closer economic engagement with Gulf partners amid its broader push to stabilize the economy and attract investment, while maintaining security and defense cooperation with key regional states.

During their meeting in Doha, PM Sharif and Qatar’s Sheikh Mohammed discussed bilateral relations and exchanged views on regional and international developments, according to the Pakistan prime minister’s office.

“They reaffirmed the strong brotherly relations between Pakistan and Qatar and expressed satisfaction at the growing momentum in political, economic and institutional ties,” Sharif’s office said.

“Discussions focused on enhancing cooperation in the fields of trade and investment, energy, defense, manpower and labor and culture, with both sides stressing the importance of their task force to accelerate cooperation in all these areas.”

Pakistan and Qatar maintain strong trade and investment ties. In 2022, the office of Qatar’s emir said the Qatar Investment Authority planned to invest $3 billion in Pakistan, targeting sectors including transport, aviation, education, health, media, technology and labor.

Nearly 300,000 Pakistanis live and work in Qatar, according to Pakistan’s foreign office, with many employed in health, education, engineering and public services, as well as construction and transport. The two countries engage through forums such as the Bilateral Political Consultations and the Joint Ministerial Commission.

Sharif said he had productive discussions with Qatar’s emir, Sheikh Tamim bin Hamad Al Thani, on how the two sides could transform their brotherly ties into mutually beneficial economic relationships. 

“We also took stock of the regional situation,” he said on X. “Pakistan and Qatar will continue to work together for peace and stability in the region and beyond.”

Prime Minister Shehbaz Sharif (second right) meets the Qatari Emir Qatar’s emir Sheikh Tamim bin Hamad Al Thani (left) in Doha, Qatar, on February 24, 2026. (PID)

DIALOGUE WITH AFGHANISTAN

Earlier, Sharif and Qatar’s Deputy PM Sheikh Saoud Al-Thani discussed the situation in Afghanistan and called for dialogue to support regional stability.

The meeting took place amid renewed tensions after Islamabad carried out airstrikes last week on what it described as Tehreek-e-Taliban Pakistan (TTP) targets inside Afghanistan. Kabul said the strikes killed civilians and vowed to respond to what it called a violation of its sovereignty.

“Regional developments were also discussed, in particular the situation in Iran and Afghanistan,” Sharif’s office said in a statement. “Both sides emphasized the importance of dialogue, de-escalation and collective efforts to promote peace and stability in the region.”

This was the second time in less than six months that Pakistan conducted airstrikes in Afghanistan. The last strikes triggered heavy, weeklong clashes between the neighbors along their border before Qatar and Turkiye mediated a ceasefire between them in Oct. last year.

Separately, Sharif held meetings with Qatar’s State Minister for Trade Dr. Ahmed bin Mohammed Al-Sayed and a delegation of the Qatar Businessmen Association (QBA), highlighting Pakistan’s investment-friendly reforms.

He invited QBA members to explore opportunities in infrastructure, logistics, energy, agriculture, technology and export-oriented manufacturing, his office said.