Provincial Finance Commission (PFC)

For distribution of public resources amongst Local government Amendment Act 2019, Khyber Pakhtunkhwa has a mechanism knows as PFC. The Finance Commission is headed by Minister Finance and Co-Chaired by Minister Local Government. The Commission comprises of two members of Provincial Assembly - one nominated by the Chief Minister and one by the opposition leader of the Provincial Assembly, Secretary Finance, Planning and Development, Law, Local Government and five Chairman of Tehsil Local Government or Mayor of City Local Government. Functions of Provincial Finance Commission (PFC): 1.Amount of grant for local governments out of provincial consolidated fund, in addition to octroi and Zilla Tax. 2.Formula for distribution of grants among local government, based on population. 3.Amount of special grants for local governments with conditions to access the facility 4.Matter related to local government finance Poverty, population, infrastructure needs, and revenue for local government are factors for formulating its recommendation.