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Pakistan delays 11th NFC award, faces economic strain from floods and political gridlock.
Pakistan’s 11th National Finance Commission session has been delayed again, with no new date set, as the country faces a revised 3.5% GDP growth forecast due to flood damage costing $2.9 billion.
The 7th NFC award, expired over a decade ago, remains in effect, with provinces receiving 57.5% of divisible taxes—Punjab 51.74%, Sindh 24.55%, Khyber Pakhtunkhwa 14.62%, and Balochistan 9.09%.
Calls for reform persist, including reducing population’s weight in allocations and introducing tax effort metrics, but progress is stalled by political disagreements, including opposition to the proposed 27th Constitutional Amendment.
Inflation reached 5.6% in September, and agriculture losses hit Rs430 billion.
The National Fiscal Pact, signed in 2024, faces implementation challenges, including Khyber Pakhtunkhwa’s exclusion.
Pakistán retrasa el 11o premio NFC, enfrenta tensiones económicas por las inundaciones y el estancamiento político.