The National Finance Commission (NFC) is a resource-sharing mechanism between the federal government and federating units. It was constituted under Article 160(1) of the 1973 Constitution. It is mandatory to constitute and hold the NFC meeting every five consecutive years. The purpose of the award is to: (1) Review the collection of revenues by the Centre from provinces. (2) Redistribute vertically between the federal and the provincial governments, as well as horizontally among the provinces. (3) Smooth and equitable fiscal transfers from Centre to provinces that may lead to the development and prosperity of all federating units.