Islamabad: The 11th National Finance Commission (NFC) was informed by President Asif Ali Zardari to resolve financial issues between the federation and the provinces.
The commission, made up of nine members, was announced through a notification published Friday by the Finance Division, which also dissolved the 10th NFC formed in July 2020.
According to the notification, the Federal Minister of Finance will chair the Commission, while the finance ministers of Punjab, Sindh, Khyber Pakhtunkhwa and Balutchistan will serve as ex-officio members.
Each province has also appointed an expert, increasing the total number of new members. The Punjab will be represented by Nasir Mahmood Khosa, Sindh by Dr. Asad Sayeed, Khyber Pakhtunkhwa by Dr Musharraf Rasool Cyan and Balutchistan by Farman Ullah.
The NFC has been responsible for making recommendations to the President concerning the distribution of the net tax product collected by the federal government between the Federation and the provinces, subsidies to the provinces and borrowing powers of federal and provincial governments.
He will also deliberate on the sharing of financial responsibilities for national projects, trans-provincial initiatives and other tax issues referred by the president.
The new terms of reference are recommended to the president for the next price are:
a) the distribution between the federation and the provinces of the net product of the taxes mentioned in the clause (3) of article 160 of the Constitution;
b) the subsidy of federal government subsidies to provincial governments;
c) the exercise, by the federal government and the provincial governments, of the borrowing powers conferred by the Constitution;
d) issues relating to the sharing of financial expenses incurred or to be incurred by the Federation with regard to subjects and issues in the provinces’ domain;
e) issues relating to the sharing of financial expenses incurred or to be incurred by the Federation or the provinces or both with regard to trans-provinces;
f) Problems relating to the financial expenses of national projects must be shared by the Federation and the provinces; And
g) Any other question relating to finances referred to the Commission by the President
