Pakistan is a federal state having different tiers of government; the federal government at the centre, and the four provincial governments. There is also a third tier, i.e. local governments. Being a central type of government, a huge chunk of revenue is collected by the federal government and then redistributed vertically between federal and provincial governments and horizontally among the provinces. For that purpose, the Constitution of Pakistan requires that the National Finance Commission (NFC) be constituted every five years to recommend the annual distribution of national revenue between the federation and the provinces as well as among the provinces.
As the government is in the process of forging consensus on the distribution of resources under the eleventh National Finance Commission (NFC) Award, it is apt to have a look at the history of NFC awards in Pakistan. Besides offering an overview of the NFC Awards, the instant write-up offers a blockchain-based framework for NFC transfers so as to help policymakers address critical challenges.
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