Pakistan dismisses IMF demand for reconsidering NFC Award

ISLAMABAD: Pakistan government has dismissed the International Monetary Fund’s (IMF) request to reconsider the National Finance Commission (NFC) Award, sources said.

The IMF, citing a shortfall in federal funds, urged Islamabad to reassess the NFC Award alongside the provinces during discussions for the second review of the $3 billion loan program under the SBA.

The government insiders stated that any suggestion to amend the NFC Award in violation of the constitution will not be sanctioned. While the share of provinces under the NFC Award will remain untouched, both the federation and its units can collaborate on developing a unified approach to address the issue. Additionally, the government intends to explore alternative methods to enhance its revenue.

Under Article 160 of the Constitution, the president is empowered to endorse the distribution of revenues between the federation and the provinces through the NFC Award. Although the 2010 NFC Award was initially agreed upon for a five-year term, there has been no consensus to revisit it since then.

The IMF delegation is presently in Pakistan for the second review of the SBA loan program. Approval from the IMF would release a $1.1 billion loan installment for Pakistan.