Constitution 1973 § Article 160 — National Finance Commission

Statutory text (English)

(1) Within six months of the commencing day and
thereafter at intervals not exceeding five years, the President shall 1constitute a National Finance
Commission consisting of the Minister of Finance of the Federal Government, the Ministers of Finance
of the Provincial Governments, and such other persons as may be appointed by the President after
consultation with the Governors of the Provinces.

(2) It shall be the duty of the National Finance Commission to make recommendations to the
President as to—
(a) the distribution between the Federation and the Provinces of the net proceeds of
the taxes mentioned in clause

(3);
(b) the making of grants-in-aid by the Federal Government to the Provincial
Governments;
(c) the exercise by the Federal Government and the Provincial Governments of the
borrowing powers conferred by the Constitution; and
(d) any other matter relating to finance referred to the Commission by the President.

(3) The taxes referred to in paragraph (a) of clause

(2) are the following taxes raised under the
authority of 2[Majlis-e-Shoora (Parliament)], namely:—
(i) taxes on income, including corporation tax, but not including taxes on income
consisting of remuneration paid out of the Federal Consolidated Fund;
3[(ii) taxes on the sales and purchases of goods imported, exported, produced,
manufactured or consumed;]
(iii) export duties on cotton, and such other export duties as may be specified by the
President;
(iv) such duties of excise as may be specified by the President; and
(v) such other taxes as may be specified by the President.
4[(3A) The share of the Provinces in each Award of National Finance Commission shall not be
less than the share given to the Provinces in the previous Award.
(3B) The Federal Finance Minister and Provincial Finance Ministers shall monitor the
implementation of the Award biannually and lay their reports before both Houses of Majlis-e-Shoora
(Parliament) and the Provincial Assemblies.]

(4) As soon as may be after receiving the recommendations of the National Finance
Commission, the President shall, by 1Order, specify, in accordance with the recommendations of the
Commission under paragraph (a) of clause

(2), the share of the net proceeds of the taxes mentioned in
clause

(3) which is to be allocated to each Province, and that share shall be paid to the Government of
the Province concerned, and, notwithstanding the provision of Article 78 shall not form part of the
Federal Consolidated Fund.

(5) The recommendations of the National Finance Commission, together with an explanatory
memorandum as to the action taken thereon, shall be laid before both Houses and the Provincial
Assemblies.

(6) At any time before an Order under clause

(4) is made, the President may, by Order, make
such amendments or modifications in the law relating to the distribution of revenues between the
Federal Government and the Provincial Governments as he may deem necessary or expedient.

(7) The President may, by Order, make grants in aid of the revenues of the Provinces in need
of assistance and such grants shall be charged upon the Federal Consolidated Fund.

Source and verification

Source citation: Constitution of the Islamic Republic of Pakistan, 1973, Art. 160: Pakistan Code portal consolidated official PDF 'THE CONSTITUTION OF THE ISLAMIC REPUBLIC OF PAKISTAN' (incl. 26th Amdt Act 2024 & 27th Amdt Act 2025), p. 74, 75, ingested 2026-09-15. Automated transcription from official source (pypdf extraction, audited artifact repair); human admin re-check required before production.

Verification status: verified · Text status: auto_transcribed_verified_source

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Historical text notes

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• Date not confirmed: Consolidated current text as published in the official Pakistan Code PDF (p. 74, 75) — reflects all amendments recorded in the official footnotes up to ingest date 2026-09-15. Automated transcription; per-amendment…

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