New Delhi, Feb 8 (NationPress) In a clear demonstration of ineffective governance in Pakistan, the nation’s National Finance Commission (NFC) has not convened any meetings to update the formula for resource allocation between the federal government and the provinces, as reported by local media.

Among the eight technical working groups established for this purpose, only two have met once, while the other six have not gathered since their formation in December, according to a report from the Karachi-based Business Recorder.

Reports indicate that officials from the Finance Ministry have cited the busy travel schedules of the Finance Minister and Finance Secretary as reasons for the delays, while also blaming the provinces, as most groups are led by provincial Finance Ministers.

“However, the mere busy schedules of key federal and provincial figures cannot justify this stagnation. Is there truly no system in place for delegating initial responsibilities to junior officials, setting up preliminary meetings, or seeking legal and technical advice beforehand? Numerous vital issues remain unresolved,” the report emphasized.

“This inaction represents a significant failure of duty. Urgent decisions that require immediate attention—including revisiting the formula for horizontal distribution and renegotiating the vertical separation between the federation and the provinces—are inherently complex and potentially contentious. Yet, complexity should not excuse inaction. The failure to even initiate discussions on these matters is unacceptable, especially given the NFC award’s importance to fiscal stability, inter-governmental trust, and effective governance,” it added.

A notable instance is the group investigating the integration of former FATA into Khyber-Pakhtunkhwa, which had requested comprehensive information from the federal Finance Secretary on how increasing KP’s share to meet the needs of the merged districts would impact the shares of other provinces.

Weeks have passed without receiving this information, thereby hindering a second meeting and underscoring how even proactive efforts are impeded by federal inaction, the report highlighted.

Additionally, the other group responsible for reviewing the divisible pool of taxes under the Finance Minister has also made minimal progress. Assigned to suggest additions or removals from the divisible tax pool, this group has stalled on a critical component of the NFC process.

The federal government has repeatedly expressed concerns about its diminishing fiscal space, particularly as provinces receive the majority of the NFC award, with 57.5% of federal tax revenues allocated to them. This context renders the federal government’s own inaction on this matter even more challenging to rationalize.