ISLAMABAD (The Thursday Times) — The federal government transferred Rs1.895 trillion to the four provinces under the National Finance Commission (NFC) award in the first quarter of the 2026-27 financial year, and three of them ended July to September with budget surpluses, Finance Ministry documents show.
Punjab, Sindh, and Khyber Pakhtunkhwa together ran surpluses of Rs615 billion in the quarter. Balochistan was the only province in deficit, spending Rs16 billion more than it took in.
Punjab received Rs942 billion under the award, the largest share. Its total revenue was Rs1.117 trillion and its spending Rs784 billion, leaving a surplus of Rs333 billion.
Sindh received Rs479 billion. With total revenue of Rs690 billion and spending of Rs509 billion, it ran a surplus of Rs180 billion.
Khyber Pakhtunkhwa received Rs314 billion. Its revenue came to Rs413 billion against spending of Rs311 billion, a surplus of Rs102 billion.
Balochistan received Rs158 billion. Its revenue was Rs175 billion and its spending Rs191 billion.
How much the provinces lean on the centre
The figures show how much of each province’s income comes from the federal pool. NFC transfers made up about 90% of Balochistan’s revenue in the quarter, 84% of Punjab’s, 76% of Khyber Pakhtunkhwa’s, and 69% of Sindh’s, which collects the largest share of its own taxes.
The provincial surpluses feed into the national accounts. Federal and provincial governments together ran a fiscal surplus of Rs1.27 trillion in the quarter, provisional Finance Division figures released this week show. Under the National Fiscal Pact agreed in 2024 as part of Pakistan’s programme with the International Monetary Fund, the provinces are expected to save part of what they receive and to raise more of their own revenue.
Talks on a new award opened in December 2025, when the 11th National Finance Commission held its first meeting in Islamabad. The formula for dividing federal taxes is also at the centre of the debate over creating new provinces, since any new units would need a share of the same pool.
