Khyber-Pakhtunkhwa (K-P) has refused to take part in National Finance Commission (NFC) talks after Punjab, Sindh, and Balochistan declined to include the population of the merged districts in the next resource distribution formula. The standoff leaves K-P’s share stagnant and delays funds for 6.1 million residents, sparking concerns over constitutional rights and regional development.
Finance Minister Muzzammil Aslam informed the provincial assembly that K-P was ready to resume discussions on the 11th NFC award and future fiscal formulas, but the process cannot move forward unless the other provinces honor their earlier commitment to increase K-P’s share from 14.62% to 18.96%, reflecting the merger of the former Federally Administered Tribal Areas (FATA) in 2018.
Aslam said that failure to allocate funds to the merged districts had resulted in nearly Rs980 billion being diverted to other provinces, undermining constitutional provisions and delaying development, essential services, and stability in the region.
The K-P government has also refused to support any extension of the existing NFC award until the merged districts’ share is resolved, proposing that the federal government provide interim discretionary grants to the province.
Senior Pakistan Tehreek-e-Insaf (PTI) leader and former National Assembly Speaker Asad Qaiser has said that Khyber-Pakhtunkhwa (K-P) is once again being treated unfairly in the NFC award, which is completely unacceptable.
In a statement, PTI leader and Secretary-General of the opposition alliance Tehreek-e-Tahafuz-e-Aeen Pakistan, Asad Qaiser, said the 2010 NFC award was based on the 1998 census, which prevented K-P from receiving its full and rightful share despite its rapidly growing population.
He added that after the 2018 merger of FATA, K-P’s area increased from 9.4% to nearly 13% and its population rose from 12% to 17.3%. Yet, despite these clear changes, the province is reportedly being denied its due share in 2026 based on population and area, which he described as deeply concerning.
