ContentsIntroduction 3Historical Perspective 4Pre-Independence Revenue Sharing Formula 4POST-INDEPENDENCE REVENUE SHARING (RAISMAN PRICE) 4REVENUE SHARING UNDER ONE UNIT 5National Finance Committee 5National Finance Commission 1973 61st NFC Prize 1974 62nd NFC Prize (1979) ) 63rd NFC Prize 74th NFC Prize 7The 5th NFC Prize 8IntroductionIn the name of Allah who is the most merciful and the most beneficent, as we know best, the Islamic Republic of Pakistan is a low-income federated country that includes four provinces (currently five provinces) that is administered at the federal level. Most government revenue comes from income tax, then distributed through the NFC revenue sharing formula between provinces, and then redistributed from provincial to local and local to local. NFC awards in Pakistan established in 1970 called National Finance. committee, but when East Pakistan separated from West Pakistan in 1971. National Finance Commission established under Article 160 in 1973 of the constitution of Pakistan, the NFC award is awarded every five years by the Chairman of the Pakistan. For equitable transfers between the federal and provincial governments. The NFC awards extend every 5 years and the chairman of the NFC awards is the President of Pakistan, and the members are the provincial finance ministers and some economists selected by the President of Pakistan and they are headed by the Federal Minister of Finance. There are seven National Finance Commission (NFC) awards that have been distributed between the federal and provincial governments out of these seven...... middle of paper ...... It is also like the previous NFC which had no consequences, and the members did not give any recommendations due to certain requests from its members. 7th NFC AwardThe 7th NFC Award of 2010 is constituted by the President of the Islamic Republic of Pakistan and it has brought some Improvement and variation in the criteria for distribution of remedies, and this NFC award, the demand of Balochistan, Sindh and of the KPK were accepted. For the first time, the distribution criteria has been changed relative to the population in the history of NFC awards. And this formula includes underdevelopment, poverty and inverse population density demanded by Balochistan, KPK and Sindh. And it was a step forward in NFC rewards. Reverse population density was demanded by Balochistan, but Punjab demanded that population be the main criterion as the population of Punjab is the highest..