Overview
- The inaugural session in Islamabad, chaired by Finance Minister Muhammad Aurangzeb, brought together federal and provincial representatives along with FBR and private members.
- Participants agreed to set up six to seven working groups with an umbrella panel, including a dedicated subgroup to integrate the former FATA/newly merged districts, aiming for recommendations by mid‑January 2026.
- The Planning Ministry’s ‘Revisiting the NFC Award’ paper outlined two vertical options—either a 2.5% upfront allocation for national priorities or charging BISP and HEC before distribution—plus three horizontal models that cut population weight and add revenue effort, fertility and forest cover.
- The horizontal options would reduce Punjab’s share from 51.74% toward 47.26–41.89%, keep Sindh near 25%, raise KP to about 15.67–17.12% and lift Balochistan to roughly 9.75–12.02%, with ICT gaining in some scenarios.
- Provinces called the tone cordial; Sindh urged talks focus on revenue sharing rather than shifting expenses, KP pressed for full inclusion of merged districts and cited Rs1.3 trillion in federal arrears, and the next sitting is expected between January 7 and 15.