Khyber Pakhtunkhwa Govt Initiative: Establishment of Provincial Finance Commission

The Khyber Pakhtunkhwa government has greenlit the establishment of a Provincial Finance Commission (PFC) to supervise fund allocation to local administrations, resembling the National Finance Commission (NFC) framework.

The proposal for forming the PFC originated from a Finance Department summary, gaining subsequent approval from the Provincial Cabinet. Headed by the provincial Finance Minister, the commission will also have the local government minister as co-chair.

Comprising 13 members, including key provincial figures like the finance secretary (who serves as both secretary and member), local government secretary, development and planning secretary, and law secretary, the commission will also include two Provincial Assembly members, one from each side of the aisle.

Moreover, the PFC will feature five Tehsil Chairmen representing distinct regions: tribal areas, central districts, Malakand, Hazara, and southern districts, each elected to the commission by their respective regions.

The primary task of the PFC will be sanctioning the distribution of development funds based on a predefined formula. According to the approved summary, funds will be allocated based on population (60%), level of backwardness (20%), and infrastructure deficiencies (20%).

This strategic move aims to foster a fairer and more transparent fund distribution process, catering to the varied needs of different regions within the province.