NFC reform

This refers to the letter ‘A better NFC’ by Dr Mohammad Saleem (November 17, 2025). According to the writer, there are reports that the federal government may amend the constitution to remove population as a key factor in the National Finance Commission (NFC) Award. This has, of course, sparked serious concerns and debate up and down the country. I absolutely agree with the writer that the NFC Award formula should be reformed. Punjab and Sindh, being the slightly better developed provinces of Pakistan, are naturally expected to shed some of their greater NFC Award allocations in favour of Khyber Pakhtunkhwa and Balochistan, where the prevailing situations entail greater spending by the state to usher in a safer and more secure environment.

A painstaking deliberation should be conducted in Islamabad and other areas, with input from the private sector and academia. Once a consensus based new NFC formula is ready, it should be implemented on a war-footing. The new NFC formula should reward population stabilisation efforts and help uplift deprived districts.

Abbas R Siddiqi

Lahore