PESHAWAR/KOHAT/CHITRAL: Khyber Pakhtunkhwa’s share in the National Finance Commission Award and the financial and administrative challenges of the merged tribal districts were discussed by speakers during two seminars at the University of Peshawar and Khyber Medical University here on Monday.

The seminars, arranged on the directives of Chief Minister Sohail Afridi, were attended by a large number of teachers, students and administrative staff members.

The UoP seminar was organised by the Society of Economics and Development Students, in collaboration with the Development Insights Lab, the Department of Economics, and the Business Incubation Centre of the University of Peshawar.

Vice-Chancellor Prof Johar Ali emphasised the importance of evidence-based policy discussions in shaping Pakistan’s fiscal future.

Seminars held to highlight tribal districts’ financial and administrative issues

Dr. Sajjad Ahmed Jan, chairman of the Department of Economics, offered an overview of the technical aspects of the NFC Award, including inter-provincial fiscal relations, revenue-sharing mechanisms, and the financial responsibilities devolved to provinces.

Ahmad Kundi of the PPP, Ms Shagufta Malik of the ANP, Jalil Jan of the JUI-F, Kamran Bangash of the PTI, Taimur Jhagra of the PTI, Inayatullah Khan of the JI and Salahuddin of the ANP shared their perspectives on KP’s fiscal rights, the impact of delayed NFC awards, the financial implications of the merged districts, and the need for a transparent, equitable distribution formula.

During the KMU seminar, Prof Fazalur Rahman Qureshi, former chairman of the Board of Intermediate and Secondary Education Peshawar, highlighted the constitutional rights of Khyber Pakhtunkhwa, systemic weaknesses in the federal fiscal structure and the pressing issues faced by the merged tribal districts.

He noted that under the Constitution, the NFC formed the backbone of the federal fiscal framework through which the divisible pool of federal revenues was allocated among the provinces.

“Though the 7th NFC Award introduced multiple indicators such as population, poverty and backwardness, provincial revenue generation and inverse population density, 82 per cent of the weight is still assigned to population, resulting in persistent financial disadvantages for smaller provinces, especially Khyber Pakhtunkhwa,” he said.

Also in the day, Women University Mardan organised an awareness seminar on “NFC Share and Challenges Faced by Khyber Pakhtunkhwa” in its main hall.

Former adviser to the chief minister on finance and energy Himayatullah Khan drew on his extensive expertise in public finance, provincial budgeting and NFC negotiations. He examined KP’s rightful claim to federal resources, the historical and ongoing underfunding of merged districts, and the implications of the incomplete financial merger on development, governance and service delivery.

He also highlighted the wider context of equitable federalism and post-18th Constitutional Amendment financial devolution as essential components of the province’s economic stability.

Prof Razia Sultana, Vice Chancellor of the Women’s University Mardan, emphasised the importance of sensitising students, faculty and the academic community to KP’s fiscal challenges, particularly in view of the upcoming NFC meeting scheduled for Dec 4 in Islamabad.

Also, the University of Swat organised a seminar to highlight the province’s unpaid NFC share, outstanding hydropower dues and widening financial challenges.

The event, titled “Khyber Pakhtunkhwa’s Share in NFC Award and Financial Challenges,” was held at Wadudia Hall in Saidu Sharif, where students, faculty members, administrative staff and experts showed up.

Experts, including Prof Umar Hayat, Prof Anwar Hussain, Principal Government Postgraduate Jahanzeb College Mohammad Kamal and president of ISF Malakand Division Engineer Saifullah Khan, accused the federal government of withholding KP’s constitutionally guaranteed financial entitlements for several years, calling it “open injustice” to the province.

Prof Hayat said from 2018 to 2025, KP had not received its full share under the NFC Award.

He noted that even after the merger of the former Fata region in 2018, the province’s horizontal share remained frozen at 14.62 per cent, despite pre-merger tribal areas receiving an effective additional 3-5 per cent from the federal divisible pool.

“After the merger, KP’s combined rightful share should have increased to nearly 19.62 per cent, but no such adjustment has been reflected in any NFC Award so far,” he said.

Meanwhile, a seminar on the NFC Award was held by the Kohat University of Science and Technology.

Special assistant to the chief minister on information Shafi Jan told participants that though Fata was administratively merged with Khyber Pakhtunkhwa, its financial integration was still incomplete, which was unfair to both the region and the province.

He said that since 2018, the rightful NFC share had not been provided to Khyber Pakhtunkhwa and that despite the merger of Fata, the province’s share in the NFC Award had not been increased.

“Interim adjustment in the NFC Award is the need of the hour,” he said.

The aide to the CM said the population and area of the merged districts must be included to revise the province’s NFC share.

Also, a seminar on the “NFC Award and Challenges Faced by Khyber Pakhtunkhwa” was held at the University of Chitral here.

The speakers highlighted the province’s rightful share under the NFC Award and highlighted the financial shortfall and the challenges in funding, development and service delivery, exacerbated by the non-allocation of promised NFC funds.

The speakers discussed the details of NFC Award and its implications for KP’s development.

Vice Chancellor Prof Hazirullah stressed the importance of ensuring a fair share in NFC Award for the provinces, especially Khyber Pakhtunkhwa, given its unique development and security challenges.

Expert Dr Inayatullah Faizi highlighted the historical background, formation and constitutional role of NFC in the federal structure of Pakistan and emphasised the need for regular NFC updates to address emerging economic realities.

Prof Anwar Shah of Quaid-e-Azam University explained the fiscal imbalance faced by the provinces and stressed the need for transparency, up-to-date data and a more equitable distribution mechanism. Dr. Irfan Mehsud from NDU highlighted a critical analysis of the NFC Award.

Published in Dawn, December 2nd, 2025