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Ex-Fata and the NFC


February 4, 2021
The writer has a doctorate in economics and has three decades of experience in public policy and management. He represents KP in the 10th NFC.
The National Finance Commission is a great Pakistani institution and a highly robust constitutional mechanism. It is similar to other federations in place worldwide but in its decision-making mechanism is unique amongst the 26 or so federations of the world. It is set up as the keystone of the federal structure with space for the pursuit of national objectives under it.
But for most of its award-making rounds, it has remained on a low achievement equilibrium, only rarely succeeding to match resources to developmental needs. In its low equilibrium, the NFC works as a budgetary mechanism aiming at periodic settlements among competing claims. Over the course of its history, it has not necessarily achieved fiscal equalization among expenditure needs arising from differential levels of development amongst the provin ....

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