ISLAMABAD – Federal Minister for Finance and Revenue Muhammad Aurangzeb has dismissed claims that the ongoing revamp of the National Finance Commission (NFC) Award process is politically motivated, asserting that the reforms are aimed purely at strengthening fiscal federalism and ensuring equitable resource distribution among provinces.
Speaking to reporters, the minister emphasized that the restructuring of the NFC is necessary to address the evolving economic challenges and fiscal needs of the federation and its units. He stated that consultations with all provinces are underway and assured that their concerns would be taken into account.
Aurangzeb clarified that the federal government is not seeking to reduce provincial shares in the divisible pool but is focusing on improving transparency, efficiency, and coordination in financial matters. He reiterated that the process is being carried out in accordance with the Constitution and with full respect for provincial autonomy.
The finance minister also stressed that reforms in the NFC Award, intergovernmental fiscal transfers, and public finance management are crucial to achieving long-term macroeconomic stability and supporting economic development across all regions.
The statement comes amid criticism from opposition parties, who allege that the move is an attempt to centralize financial control. However, the government maintains that it is working towards a fair, inclusive, and accountable fiscal framework.
