PESHAWAR: The federal government has allocated Rs8,205 billion to be distributed among the provinces under the National Finance Commission (NFC) Award for the upcoming fiscal year, with Punjab and Sindh receiving the largest shares, according to official budget documents.
Punjab, owing to its significant population, remains the biggest beneficiary and is set to receive Rs4,760 billion from the federal divisible pool. Sindh follows with an allocation of Rs2,430 billion. Khyber Pakhtunkhwa (KP) is earmarked Rs1,342 billion, which includes an additional one percent in recognition of its contributions to the war on terror. Balochistan will receive over Rs743 billion.
Beyond the NFC Award, provinces are also set to gain more than Rs217 billion in oil and gas royalties, providing them with additional fiscal space for development spending and governance improvements.
This year’s NFC allocations reflect a substantial increase of Rs1,208 billion compared to last year. Punjab’s share has risen by Rs641 billion, Sindh by Rs291 billion, KP by Rs207 billion, and Balochistan by Rs70 billion.
The funds come from a range of federal revenue streams, including income tax, capital value tax, sales tax, federal excise duty (FED), and customs duties. The expanded allocations are expected to strengthen provincial capacities to invest in critical social sectors such as healthcare, education, and infrastructure, at a time when rising inflation and financial constraints continue to challenge public service delivery.
Read also: PM decides to form committee for KP’s share in NFC award and Jirga system
