PESHAWAR: A seminar on “Khyber Pakhtunkhwa’s NFC Share and the Financial & Administrative Challenges of Merged Tribal Districts” was held here at the University of Engineering and Technology (UET), Peshawar on the directives of the Chief Minister Khyber Pakhtunkhwa.
Dr Syed Akhtar Ali Shah, Chairman Good Governance Forum graced the event as the keynote speaker.
He appreciated the efforts of UET Peshawar for organising a timely and important seminar on this crucial national issue.
During his detailed presentation, Dr Shah explained Khyber Pakhtunkhwa’s constitutional rights, structural weaknesses in the federal financial system, and the serious challenges faced by the merged tribal districts (MDs).
He stated that the National Finance Commission (NFC), as mandated by the Constitution of Pakistan, forms the foundation of the federal fiscal structure, determining the provincial share in the divisible pool.
He highlighted that although the 7th NFC Award introduced indicators such as population, backwardness, provincial revenue generation, and inverse population density, nearly 82 percent weightage is still given to population alone, which disproportionately affects smaller provinces, particularly Khyber Pakhtunkhwa.
Dr Shah emphasised that factors such as geographical disadvantages, terrorism, floods, the presence of IDPs, spiraling energy costs, violation of border policies with Afghanistan, economic downturn, and destruction of infrastructure have severely impacted Khyber Pakhtunkhwa.
He condemned the federal government’s failure to deliver the annually committed Rs 100 billion for the merged tribal districts, terming it a grave injustice to the province.
The seminar also underscored that Articles 160 and 161 of the Constitution provide clear guarantees of provincial financial rights, including net hydel profit, and royalties on gas, petroleum, and other natural resources.
However, Khyber Pakhtunkhwa has not yet fully received the benefits guaranteed under these provisions.
Dr Shah stressed the urgent need for the formation of the new NFC Award, regular meetings of the Council of Common Interests (CCI), and improved intergovernmental coordination at the national level.
He warned that national cohesion and provincial trust will remain strained unless Khyber Pakhtunkhwa receives its rightful constitutional share and a fair distribution of resources is ensured.
The seminar was attended by Senior Dean Prof Dr Rizwan Gul, Dean Electrical Engineering Prof Dr Syed Waqar Shah, Registrar, Dr Khizar Azam Khan, Treasurer Shahid Nawaz, faculty members, administrative staff and a large number of students.
Copyright Business Recorder, 2025
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