Dawn
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03:46 Jul 22, 2026
KP’S petition before the Federal Constitutional Court, seeking Rs964bn as the province’s claimed share of tax revenues since the Fata merger in 2018, may well be a political move by the PTI-led government. Still, it raises larger constitutional and fiscal questions about Pakistan’s federal structure, a dysfunctional National Finance Commission and distribution of fiscal resources among the provinces. The core issue is whether constitutional and fiscal arrangements can be left frozen indefinitely despite major changes in a province’s demographic and administrative realities. While the Fata merger increased KP’s responsibilities, the province’s share from the federal tax pool is unchanged, raising questions about fiscal rights, as well as the centre’s role under Article 160 of the Constitution. Can an NFC Award, based on circumstances more than 15 years old, continue as it is indefinitely? And does a major constitutional change like the Fata merger automatically alter provincial entitlements, or require formal ...