Provinces’ NFC Share Rises by Rs1.2 Trillion in 2025-26 Budget
News Desk
Islamabad: The federal government has earmarked Rs8,205 billion for distribution among the provinces under the National Finance Commission (NFC) Award for the fiscal year 2025-26, reflecting a substantial increase in provincial allocations compared to the previous year.
According to budget documents, Punjab and Sindh will remain the top beneficiaries due to their population size, with Punjab set to receive Rs4,760 billion and Sindh Rs2,430 billion from the federal divisible pool.
Khyber Pakhtunkhwa is allocated Rs1,342 billion, which includes an additional one percent share in recognition of its role in the war on terror. Balochistan is expected to receive over Rs743 billion.
The provinces will also receive more than Rs217 billion in oil and gas royalties, further enhancing their fiscal space for development and governance.
This year’s allocations mark an overall increase of Rs1,208 billion from the outgoing fiscal year. Punjab’s share rises by Rs641 billion, Sindh by Rs291 billion, KP by Rs207 billion, and Balochistan by Rs70 billion.
Funds distributed under the NFC Award are sourced from income tax, capital value tax, sales tax, federal excise duty, and customs duties.
The enhanced financial allocations are expected to support the provinces in addressing critical development needs in health, education, and infrastructure amid growing inflationary and fiscal pressures.
