Disproportionate Growth: the NFC Award and Its Impacts on Interprovincial
Inequality in Pakistan

Iman Sharjeel Sheikh

doi:10.46609/IJSSER.2026.v11i10.038

Title: Disproportionate Growth: the NFC Award and Its Impacts on Interprovincial Inequality in Pakistan
Authors: Iman Sharjeel Sheikh
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 11 Issue: 10 Publication Date: October 2026 DOI: 10.46609/IJSSER.2026.v11i10.038
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Iman Sharjeel Sheikh St. Christopher School Bahrain
MLA 8 Sheikh, Iman Sharjeel. "Disproportionate Growth: the NFC Award and Its Impacts on Interprovincial Inequality in Pakistan." Int. j. of Social Science and Economic Research, vol. 11, no. 10, Oct. 2026, pp. 6031-6050, doi.org/10.46609/IJSSER.2026.v11i10.038. Accessed Oct. 2026. APA 6 Sheikh, I. (2026, October). Disproportionate Growth: the NFC Award and Its Impacts on Interprovincial Inequality in Pakistan. Int. j. of Social Science and Economic Research, 11(10), 6031-6050. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i10.038 Chicago Sheikh, Iman Sharjeel. "Disproportionate Growth: the NFC Award and Its Impacts on Interprovincial Inequality in Pakistan." Int. j. of Social Science and Economic Research 11, no. 10 (October 2026), 6031-6050. Accessed October, 2026. https://doi.org/10.46609/IJSSER.2026.v11i10.038.
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ABSTRACT: The 7th NFC Award, which determines how fiscal resources are distributed within provinces, came into effect in 2010. However, the impact of this fiscal mechanism on education, income and employment has not been thoroughly researched. This study examined how the increase in federal transfers led to changes in literacy, unemployment and incomes. This research utilised the purposive sampling technique and conducted a questionnaire to gather data about the effectiveness of the 7th NFC Award. It was found that, although higher federal transfers increased the fiscal capacity of provinces, the findings do not indicate that the increase in funds was sufficient enough to substantially reduce interprovincial disparities in literacy, income and employment. These findings suggest that the NFC Award must be restructured to incentivise development and revenue generation to promote equitable resource distribution.

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