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The NWFP government is near agreement with the federal government over the appointment of the chairman of the arbitration committee to resolve the long standing dispute with the Water and Power Development Authority (Wapda) regarding the huge outstanding amount of net profit on hydel generation of the province. "The reconciliatory efforts are going in right direction and very soon the people of the province would hear good news on the subject shortly", said NWFP Chief Minister Akram Khan Durrani, while talking to newsmen during a function at a local hotel on Saturday night.
The provincial government and some opposition parties claim a huge outstanding amount of Rs 345 billion against Wapda in head of the net profit. The federal government, under the Constitution of 1973 is guarantor in the matter, had agreed last year to resolve the matter through arbitration, he added.
He said both Wapda and the NWFP government have already given the names of the representatives on the committee. However, the crucial matter regarding the nomination of the chairman is still pending.
In this connection, the legislative assembly of the province had passed a number of resolutions unanimously calling for the resolution of the matter to pave the way for the release of the huge outstanding fund to the backward and poverty-stricken federating unit of the country - NWFP.
Wapda pays Rs 6 billion to the NWFP government in head of net profit on hydel generation, which according to the officials of the provincial government, is a peanut as compared to the actual amount, which was agreed in first National Finance Commission Award of 1991, and the increase also promised, but very soon the federal government capped it at Rs 6 billion.
During last financial year, the provincial government was facing resources to announce its annual budget, former prime minister Mir Zafarullah Khan Jamali and then-finance minister, Prime Minister Shaukat Aziz, gave assurance to NWFP government in not only Rs 2 billion increase in the existing Rs 6 billion, but also assured their role in the resolution of the crucial matter of the huge outstanding amount.
The NWFP is a poor province of generating only 10 percent of its annual budget, while the remaining 90 percent comes from the federal government, and other international financial and donor agencies.
In the current budget, the provincial government had shown Rs 18 billion receipt from the federal government. But they are due to pay only Rs 6 billion and the remaining Rs 12 billion would be a deficit.
The provincial government, political parties, and general public are also concerned over the lack of interest shown by the federal government in launching any of the mega projects.
The provincial government is of the view that in case of the longstanding dispute on outstanding amount with Wapda and its payment, the province would not only in a position to return the federal government debts, but also be able to launch mega projects to bring development to this poverty-stricken province. NWFP is the poorest province with per capita income of Rs746.

Copyright Business Recorder, 2005

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