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Governance and Public Policy QUESTION #10524
Question 1
Revenue distribution between Pakistan's federation and its provinces is constitutionally managed through:
  • Council of Common Interests (CCI)
  • National Economic Council (NEC)
  • Finance Committee of the Parliament
  • National Finance Commission (NFC)✔️
Correct Answer Explanation
The National Finance Commission (NFC), established under Article 160 of Pakistan's Constitution, is the constitutional mechanism for distributing revenues between the federal government and the four provinces. The NFC Award determines the divisible pool and its horizontal (inter-provincial) distribution criteria. The CCI coordinates federal-provincial policies on specified subjects, while the NEC addresses economic policy.