KP gets Rs2,347bn under NFC Award

The federal government has transferred Rs2,347 billion to Khyber Pakhtunkhwa under the National Finance Commission (NFC) Award during the last two financial years, according to details released by the Ministry of Finance.

The ministry’s data showed that the province received Rs1,244 billion during the fiscal year 2025-26. In the previous fiscal year, 2024-25, the federal government transferred Rs1,103 billion to Khyber Pakhtunkhwa under the NFC framework.

The figures indicate that the province received a total of Rs2,347 billion in NFC-related transfers over the two-year period.

Officials from the Ministry of Finance said the federal government distributes a share of tax revenues among the provinces under the NFC Award. Each province receives its share according to the formula agreed under the NFC mechanism.

According to ministry officials, 57.5 per cent of the Federal Board of Revenue’s tax collection is transferred to the provinces. The remaining revenue is retained by the federal government under the existing revenue-sharing arrangement.

Officials clarified that non-tax revenue is not included in the amount distributed among the provinces under the NFC formula. Such revenues remain with the federal government.

The officials further explained that petroleum levy collections fall under non-tax revenue. Therefore, provinces do not receive a share of petroleum levy collections through the NFC Award.

The latest figures provide details of the federal transfers made to Khyber Pakhtunkhwa under the NFC mechanism during the two financial years.