PESHAWAR: The Peshawar High Court on Tuesday directed the National Finance Commission (NFC) to respond to a petition that challenged the non-issuance of a new NFC Award and put the attorney general for Pakistan on notice, asking him to attend the next hearing.

A bench consisting of Justice Ijaz Anwar and Justice Kamran Hayat Khan Miankhel fixed Nov 11 for next hearing into the petition filed by former provincial minister and Pakistan Tehreek-i-Insaf leader Taimur Saleem Khan Jhagra against the federal government’s what he called “failure to issue the new National Finance Commission Award, as required by the Constitution and meet the financial obligations” of the erstwhile Federally Administered Tribal Areas.

He requested the court to declare that the non-issuance of a fresh NFC Award is illegal, given significant changes in the “legal and factual realities” in the country, including the devolution of various subjects to provinces in line with the Constitution (Eighteenth Amendment) Act, the merger of Fata with Khyber Pakhtunkhwa, and the 2017 population census.

The petitioner requested orders for the announcement of a revised NFC Award to determine Khyber Pakhtunkhwa’s share to eliminate the existing disparity.

Petitioner Jhagra seeks revised award to determine KP’s share

The bench also adjourned until Nov 11 the hearing into two other connected petitions on almost the same matter.

One of the other petitions was filed by six former MPAs, especially Syed Ghazi Ghazan Jamal, challenging the non-issuance of the new NFC Award after the merger of the erstwhile Fata with the province.

The petitioners requested the court to declare that the people of tribal districts are entitled to three per cent share in the NFC Divisible Pool.

Similarly, the other petition was filed in 2022 by the then MPA Shafiq Afridi against the suspension of funding for free treatment of the residents of tribal districts under the Sehat Card Plus programme as well as the non-provision of the three per cent due share in the National Finance Commission Award for the region previously called Fata.

The petitioner has requested the court to declare that the people of tribal districts were entitled to their due NFC Award share, which was three per cent of the federal divisible pool.

Senior lawyer Ali Gohar Durrani appeared for the petitioners, whereas Advocate General Shah Faisal Uthmankhel and assistant attorney general Bilal Ahmad Durrani represented the Khyber Pakhtunkhwa and federal government, respectively.

Mr Durrani argued that following the merger of Fata with KP, the province’s population had increased significantly; hence, there was a need to revise the NFC Award.

He argued that the 2017 and 2023 censuses had been completed, showing a substantial rise in the province’s population, therefore, in accordance with the Constitution, KP should be given its share in the new NFC Award proportional to its population.

He contended that releasing a new NFC Award was essential for the province’s development and to meet the requirements of the newly merged districts.

During the hearing, the bench inquired why KP was not given a new share when the petitioner’s political party was in power at the Center. The counsel said that whichever party was in power at the Center it failed to give Fata its due share.

Mr Durrani said that no new NFC Award had been issued since 2010, whereas the Constitution dictated that a new award must be constituted before every five years.

AG Shah Faisal Uthmankhel informed the court that the last NFC Award was announced prior to the Fata merger, and no new award had been issued since.

He added that the federal government submitted a report to the court indicating that Rs27 billion was released for Fata.

When the court inquired whether Fata had its own budget prior to its merger with KP, Mr Durrani replied in the affirmative.

The AG argued that the very purpose of merging Fata with KP was to ensure equitable distribution of funds and foster development in the region.

He claimed that at the time of the merger, the federal government had approved granting KP three per cent of funds from the Federal Divisible Pool for Fata’s development, which was separate from the NFC Award.

The AG noted that in 2023, Rs115 billion was payable under that head, while the amount had grown since.

He emphasised that those funds were distinct from the NFC Award money.

The petitioner’s counsel requested the court to direct the federal government to allocate KP’s share in the new NFC Award according to the 2023 census.

Assistant attorney general Bilal Durrani said the NFC Award was not solely the federal government’s responsibility, as finance ministers from all provinces were also part of it.

The bench observed that it appeared necessary to summon the attorney general of Pakistan on the matter.

Published in Dawn, September 30th, 2026