ISLAMABAD: The federal government transferred over Rs2.3 trillion to Khyber Pakhtunkhwa (KP) under the National Finance Commission (NFC) Award during the past two fiscal years, according to details contained in a Ministry of Finance document.
According to a Ministry of Finance document, the federal government transferred Rs2,347 billion to Khyber Pakhtunkhwa under the NFC Award during the two fiscal years.
The documents show that an amount of Rs1,244 billion had been transferred to the province during fiscal year 2025-26, while Rs1,103 billion had been provided during fiscal year 2024-25.
This money was being transferred by the federal government to the province in the form of its share in the NFC Award.
Ministry of Finance officials said that the federal government makes a transfer of share in tax revenues to the provinces on the basis of the NFC Award in accordance with a fixed formula.
Officials said that 57.5 percent of FBR tax revenue is being transferred to the provinces, while non-tax revenue remains with the federal government and is not transferred to the provinces on the NFC basis.
The officials further clarified that petroleum levy revenue is classified as non-tax revenue, and therefore provinces do not receive a share of it under the NFC Award.
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