Provincial governments have accused the Finance Ministry of deliberately not convening a meeting to begin negotiations on the National Finance Commission (NFC) award for distribution of resources from the divisible pool. Member NFC Khyber Pakhtunkhwa (KPK) Professor Ibrahim speaking to Business Recorder stated that the Finance Ministry promised in the last meeting held on December 19, 2016 that the next meeting would be convened within two weeks.
However, the meeting has not been convened during the last three months and "we have decided to write a letter to the President of Pakistan to play his due role in starting negotiations on the NFC award". He said it is totally unfair that the provinces have to prepare a budget on the 7th NFC award when the 9th has been overdue for the last two years - the 8th NFC award constituted in 2010 expired in 2015 without negotiations and now the 9th is due from April 24, 2015.
"The President had constituted the 9th National Finance Commission headed by Finance Minister Ishaq Dar," he said. The NFC comprises of Ministers for Finance of the four provinces while Federal Finance Secretary is its official expert. The terms of reference of the Commission include distribution of net proceeds on taxes on income, taxes on sales and purchases of goods and export duties on cotton between the Federation and the Provinces. The Commission also assesses and allocates resources to meet expenditures related to Azad Kashmir, Gilgit-Baltistan, FATA, natural disasters and terrorism.
Professor Ibrahim said that a meeting on the delay in NFC negotiations took place in Peshawar, Finance Division, on March 15, which was attended by the KP Finance Minister and Finance Secretary as well as consultant on NFC, where it was decided to write to the President to play his role and ask the federal government to start negotiations on 9th NFC award.
NFC member government of Balochistan Qaiser Bengali also complained that the Balochistan province had been seeking a meeting on NFC but there was no response from the federal government. He said the 9th NFC has been overdue for the last two years but there is complete silence from the federal government.
This, he said, reflects disinterest by the federal government. He regretted that the federal government has been extending 7th NFC award through a Presidential Ordinance. In the last meeting, Finance Minister had proposed that the provinces allocate 3 per cent gross divisible pool for National Security Fund (NFS) and 4 percent for the development of Special Areas (FATA, Azad Jammu & Kashmir and Gilgit-Baltistan) in the 9th NFC but this proposal did not receive a positive response from the provinces.
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