The NFC Award, a step towards provincial financial autonomy, was established under Article 160 of the constitution. It plays a key role not only in ensuring fiscal equity, devolution, and stability but also in empowering provincial governments to address local challenges effectively. In theory, the award aims to mitigate disparities in provinces as well as promote equitable and balanced growth. This will finally lead to fostering inclusivity and cohesion in the country. In practice, the provinces are struggling to live up to these goals despite the award. This mismanagement in budgeting and unsatisfactory performance in provincial governance has started a fresh debate about the change in funds under the NFC Award. The provinces must show some improvement in terms of fiscal correction and promoting transparency in resource allocation and utilization. Otherwise, necessary changes should be made by the federal government, including a tight monitoring mechanism put in place to improve governance at the local level.
Jhangir Kakar
Zhob