Finance Minister Muhammad Aurangzeb expressed optimism over reaching a consensus on the National Finance Commission (NFC) Award, saying he looked forward to “very constructive discussions” with provincial chief ministers and finance ministers on December 4.
“I look forward to very constructive discussions with the chief minister and the finance ministers (provincial) during this week,” said Aurangzeb, while addressing an event on Monday.
“We will move forward, and I am sanguine that just as we signed the National Fiscal Pact last year in consultation with the federation and provinces, we will carry this forward with complete consensus,” he added.
Earlier, Business Recorder, citing its sources, reported that the federal government had convened the long-awaited meeting of the NFC on December 4. The meeting was earlier postponed several times.
The 11th NFC was formally notified by the President on August 22. However, its maiden meeting, originally planned for August 28, was postponed at the request of the Sindh government, which cited the province’s emergency, following devastating floods. According to the Finance Division, the NFC Secretariat deferred the session after receiving Sindh’s formal request.
Aurangzeb will chair the high-stakes huddle in Islamabad, where key provincial and federal stakeholders are expected to take up the thorny issue of a new NFC Award — a vital mechanism that determines the distribution of national financial resources and underpins Pakistan’s fiscal federalism.
Meanwhile, Aurangzeb, in his address, stated that Pakistan needed to negotiate the issues of climate change and population growth to reach its economic potential.
He reiterated that the flooding this year “is going to shave off roughly 0.5% from our GDP growth forecast”. “Population growth would also act as a dampener if we don’t manage it.”
Talking about the new economy, Aurangzeb noted that with 64% of Pakistan’s population under 30, the focus shouldn’t be on government-provided jobs.
“Many young people today are freelancers, leading IT and digital services and the IT economy. We need to upskill and reskill them with AI, digital infrastructure, blockchain, Web 3.0, and other technologies,” he said.
Aurangzeb shared that Pakistan was ranked third in crypto participation, as per the latest analysis, up from 10th, reflecting the importance of youth engagement in the digital economy.
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