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flag Pakistan delays 11th NFC award, faces economic strain from floods and political gridlock.

flag 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. flag 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%. flag 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. flag Inflation reached 5.6% in September, and agriculture losses hit Rs430 billion. flag The National Fiscal Pact, signed in 2024, faces implementation challenges, including Khyber Pakhtunkhwa’s exclusion.

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