Provinces receive PKR 1.895 trillion under NFC Award in Q1 FY27

Provincial transfers under the National Finance Commission (NFC) Award rose to PKR 1.895 trillion during the first quarter (July–September) of fiscal year 2026–27, with Punjab, Sindh, and Khyber Pakhtunkhwa recording budget surpluses while Balochistan posted a PKR 16 billion deficit, according to Ministry of Finance fiscal operation documents.

The quarterly transfers represent a notable increase from the PKR 1.775 trillion disbursed to the four federating units during the corresponding July–September quarter of the previous fiscal year.

How did individual provinces perform in revenues and expenditures during Q1 FY27?

According to official fiscal data released by the Finance Division, provincial governments collectively generated a cash surplus of nearly PKR 600 billion in the first three months of FY27, though performance diverged sharply between Balochistan and the other three provinces.

Punjab posted the largest provincial surplus at PKR 333 billion, recording total revenues of PKR 1.117 trillion against expenditures of PKR 784 billion. Sindh received PKR 479 billion in NFC transfers and generated total revenues of PKR 690 billion against expenditures of PKR 509 billion, resulting in a budget surplus of PKR 180 billion.

Khyber Pakhtunkhwa received PKR 314 billion under the NFC Award, posting total revenues of PKR 413 billion against expenditures of PKR 311 billion to record a budget surplus of PKR 102 billion during the period. In contrast, Balochistan received PKR 158 billion in NFC transfers and recorded total revenues of PKR 175 billion against expenditures of PKR 191 billion, resulting in a budget deficit of PKR 16 billion.

During the corresponding first quarter of the previous fiscal year, Punjab had received PKR 883 billion, Sindh PKR 442 billion, Khyber Pakhtunkhwa PKR 287 billion, and Balochistan PKR 164 billion from the federal divisible pool.

What are the full-year FY27 NFC projections and FBR tax targets?

Budget documents indicate that the federal government is projected to transfer PKR 8.7 trillion to the four provinces under the NFC Award over the full course of the current fiscal year, compared to PKR 7.6 trillion disbursed during the previous fiscal year—reflecting an annual increase of PKR 1.2 trillion.

The expanded provincial allocation is underpinned by the federal government’s enhanced revenue mobilization target for the Federal Board of Revenue (FBR), which has been set at PKR 15.6 trillion for the running financial year.

How is the full-year provincial share distributed across the four provinces?

According to official budget estimates for FY2026–27, Punjab is slated to receive PKR 4.402 trillion from the federal divisible pool, up from the revised PKR 3.745 trillion transferred in the preceding fiscal year. Sindh is projected to receive PKR 2.207 trillion in FY2026–27, compared to the revised PKR 1.879 trillion last year.

Khyber Pakhtunkhwa is allocated PKR 1.444 trillion for the current fiscal year, inclusive of its dedicated one percent share designated for expenses related to the war on terror. Meanwhile, the federal government is projected to transfer PKR 795 billion to Balochistan in FY2026–27, up from the revised PKR 735 billion disbursed in the previous fiscal year.