PM Sharif announces committee to review KP’s financial share in NFC award

PM Sharif announces committee to review KP’s financial share in NFC award

By Staff Reporter

ISLAMABAD: Prime Minister Shehbaz Sharif said on Tuesday his government will setup a committee to review Khyber Pakhtunkhwa’s share in the 2010 National Finance Commission (NFC) Award, a move aimed at addressing long-standing financial concerns raised by the province’s leadership.

The announcement came during a jirga focused on the security situation in Khyber Pakhtunkhwa (KP), a region that has borne the brunt of Pakistan’s fight against terrorism.

The NFC Award, a constitutional framework governing the distribution of financial resources between Pakistan’s federal government and its provinces, has been a source of tension between Islamabad and the KP government, led by the opposition Pakistan Tehreek-e-Insaf (PTI) party.

“As mentioned by Chief Minister Khyber Pakhtunkhwa in his address, I believe now is the time to review the 2010 NFC Award,” Sharif, addressing the gathering, said.  

The committee, tasked with evaluating the province’s financial allocations, would convene its first meeting in August. “We will sit together and seriously assess the concerns of Khyber Pakhtunkhwa,” the prime minister said, noting that the committee might also consider whether some issues warrant parliamentary discussion.

Sharif highlighted the historical significance of the 2010 NFC Award, which included specific provisions for terrorism-related financial support for KP. “The first clause of the NFC Award mentions the allocation of funds for the war on terror in KP, a move he described as the ‘right decision’ that played a key role in combating terrorism in the province,” he said.

Under this arrangement, KP has received Rs700 billion in federal transfers to date. “Funds allocated for the police are still being released,” Sharif added, emphasising ongoing efforts to bolster the province’s law enforcement capabilities through enhanced training and equipment.

Since the Taliban’s return to power in Afghanistan in 2021, terror incidents have surged in the bordering provinces of KP and Balochistan. Yet recent data offers a glimmer of hope. According to a report by the Centre for Research and Security Studies (CRSS), the first quarter of 2025 saw a nearly 13% reduction in overall violence compared to the final quarter of 2024, with fatalities among civilians and security forces dropping significantly.

Still, KP and Balochistan remain hotspots, accounting for 98% of all fatalities, with militants adopting increasingly audacious tactics, such as the unprecedented hijacking of the Jaffar Express.

Sharif reserved high praise for KP’s residents, lauding their resilience amid decades of conflict. “The people of KP have always raised the flag of Pakistan with pride,” he said, describing the province as “a beautiful and great province” whose “people’s sacrifices will be remembered in golden words in the country’s history.” He called the tribal elders and residents “brave and honourable,” noting their dignity as a hallmark of the region.

Sharif also addressed broader national security concerns, recalling India’s unprovoked attacks on May 6 and 7 that claimed civilian lives. “I was informed by the Field Marshal General Asim Munir that India had once again launched aggression, but Pakistan’s military responded in a way that ‘India will never forget,’” he said.

He also touched on India’s threats to cut off water supplies to Pakistan, a pressing issue requiring a unified response. “We will invite all four provinces to consult on how to expand our water storage capacity,” Sharif stated.

The prime minister underscored the need for national unity, invoking the sacrifices of Pakistan’s armed forces. “When our homeland calls, our brave soldiers leave behind their children and head to the front lines,” he said, urging the country to rally together for its future. He pointed to recent diplomatic gains as evidence of Pakistan’s growing stature. “After my recent visits to four countries, I can say the world is pleased with Pakistan’s progress,” he noted.

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