The federal government has earmarked Rs8,205 billion for provincial distribution under the NFC Award for the new financial year. According to budget documents, Punjab and Sindh will get the largest shares from this fiscal package.
Punjab remains the top recipient under the NFC Award, with Rs4,760 billion assigned from the divisible pool. Its population size continues to secure it the biggest cut. Sindh follows with Rs2,430 billion allocated under the same mechanism.
Khyber Pakhtunkhwa (KP) is set to receive Rs1,342 billion. This figure includes an extra one percent share in recognition of the province’s role in the war against terrorism. Balochistan will be given over Rs743 billion through the federal divisible pool.
Apart from these core NFC Award allocations, more than Rs217 billion will also be distributed to the provinces. These additional funds come from oil and gas royalties. This extra amount is expected to widen the provinces’ fiscal capacity and support their development plans.
This year’s disbursement reflects a major rise of Rs1,208 billion compared to last year. Punjab’s share increases by Rs641 billion. Sindh gets Rs291 billion more than before. KP sees a rise of Rs207 billion, while Balochistan gains Rs70 billion.
The total funds under the NFC Award come from several sources. These include income tax, capital value tax, and sales tax. Federal excise duty and customs duty also add to the divisible pool.
The provinces are expected to use this enhanced share for vital sectors. These include education, healthcare, and infrastructure. At a time when inflation is rising and economic pressure is growing, this financial boost under the NFC Award gives the provinces some breathing room.
In the coming months, this increased funding will play a central role in supporting key public services. Officials believe that the fair and timely release of these funds will be crucial for local development.
