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Inclusion of AJK & GB in NFC Award: A path to prosperity

Pakistan Observer · May 23, 2026, 1:53 AM

Why this matters: local context for readers following news across Pakistan and the region.

PAKISTAN today stands at a critical moment where national cohesion, constitutional responsibility and fiscal justice must be reassessed in the light of changing regional realities and emerging strategic challenges. Among the most important questions resurfacing is whether Azad Jammu & Kashmir (AJK) and Gilgit-Baltistan (GB) should finally be included in Pakistan’s National Finance Commission (NFC) Award. This debate is no longer merely constitutional or administrative; it reflects Pakistan’s broader vision of federalism, national integration and equitable development. A fundamental question is increasingly being asked: can regions that stand at the frontline of Pakistan’s defense, water security, strategic depth and ideological identity continue to remain outside the country’s formal fiscal-sharing mechanism? The discussion has gained renewed attention as voices from the federal level advocate a more inclusive national economic framework. For decades, AJK and GB have played a central role in Pakistan’s security and regional stability, yet they continue to rely largely on limited grants and irregular financial arrangements instead of a structured share in national resources. If there is one political leader in Pakistan’s contemporary history who consistently viewed underdeveloped and strategically sensitive regions as national responsibilities deserving equal attention, it is Nawaz Sharif. His political approach emphasized bringing neglected areas into the national mainstream through infrastructure, connectivity and economic integration. The proposal to include AJK and GB in the NFC Award aligns closely with that broader vision. Nawaz Sharif repeatedly stressed that regions contributing immensely to Pakistan’s defense, the Kashmir cause, water resources, border security and the China-Pakistan Economic Corridor (CPEC) should also receive a rightful share in federal revenues. Such a move would improve infrastructure, public services, employment opportunities and long-t

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