This document outlines Pakistan's revenue sharing formulas under the National Finance Commission (NFC) awards from 1951 to 2009. It shows how divisible pool taxes have been assigned and the sharing criteria used for each NFC award, including population, backwardness, revenue collection, and population density. The major changes have been to increase the provinces' share of revenues and include additional sharing criteria over time.

1. REVENUE SHARING FORMULA UNDER NFC AWARDS
NFC AWARDS AND ASSIGNMENT OF TAXES SHARING CRITERIA (WEIGHTS)
REVENUE INVERSE
PRE - ASSIGNED
AWARD YEAR DIVISIBLE POOL TAXES COLLECTION POPULATION BACKWARDNESS COLLECTION POPULATION
SHARES***
/GENERATION DENSITY
Sales Tax 50%* 50% N/A N/A N/A N/A
RAISMAN 1951 Income Tax & Excise N/A 100% N/A N/A N/A N/A
Duties
Export Duties N/A 100% N/A N/A N/A N/A
NFC 1961-62 Sales Tax 30% 70% N/A N/A N/A N/A
NFC 1964 All other Taxes N/A 100% N/A N/A N/A N/A
Sales Tax 30% 70% N/A N/A N/A N/A
NFC 1970
All Taxes N/A 100% N/A N/A N/A N/A
NFC 1974 All Taxes less Import N/A N/A 100% N/A N/A N/A
Duties
NFC 1990 All Taxes less Import N/A N/A 100% N/A N/A N/A
Duties
NFC 1996 All Taxes N/A N/A 100% N/A N/A N/A
NFC 2006 All Taxes N/A N/A 100% 3%** N/A N/A
NFC 2009 All Taxes N/A N/A 82% 10.3% 5% 2.7%
* Sales Tax collections from Karachi were distributed on the basis of pre-assigned shares.
** From total 3% charge on federal consolidated fund, grant allocated among four provinces as follows Punjab [11%], Sindh [21%], KPK [35%] and Baluchistan
[33%]. The basis of allocation share is judgmental and not followed any tangible criteria.
*** Pre 1970 the allocation of federal divisible pool revenues were on the basis of pre assigned share which h are slightly different than the population share of
provinces. (Refer Table 2)
N/A means the criteria not applicable in particular award.