ISLAMABAD (MNN); The Ministry of Finance on Saturday rejected allegations of delays in the release of National Finance Commission (NFC) funds, stating that provincial shares are disbursed on a fortnightly basis and that no outstanding liabilities exist.
The clarification came a day after Khyber Pakhtunkhwa Chief Minister Sohail Afridi accused the federal government of hampering development in the merged tribal districts by failing to release funds under the NFC formula during the current fiscal year.
In its statement, the ministry reiterated the federal government’s commitment to timely, transparent and sustained financial transfers to KP under the NFC Award. It said KP’s share under the 7th NFC Award stands at 14.62 per cent of the provincial share in the divisible pool, with an additional one per cent allocated from the undivided pool in recognition of the province’s role and sacrifices during the war on terror.
The ministry explained that due to the lack of consensus on subsequent NFC Awards, the 7th NFC framework continues to be implemented, under which KP continues to receive its full share, including the additional allocation.
It said Rs46.44 billion was released to KP on December 17, reflecting adherence to disbursement timelines. From July 2010 to November 2025, a total of Rs5.867 trillion was transferred to KP as its share of the divisible pool, including Rs705 billion specifically provided for the war on terror.
The statement added that uninterrupted straight transfers had also been ensured, with Rs482.78 billion released under royalties, gas development surcharge, excise duty on natural gas and other related heads during the same period.
Beyond the NFC framework, the ministry said the Centre had extended substantial financial support to KP, including Rs704 billion since 2019 to finance expenditures in the merged districts, Rs117 billion for internally displaced persons, and Rs115 billion from the federal PSDP over the past 15 years.
It further noted that Rs481.433 billion had been spent in KP through the Benazir Income Support Programme between FY2016 and FY2025.
The ministry said discussions to strengthen the NFC framework were ongoing, adding that a sub-group of the 11th NFC would meet on December 23, 2025, at KP’s request, to deliberate on the share of the merged districts.
