Business & Finance

Mayor calls for announcement of PFC Award

Published March 8, 2017 Updated March 8, 2017 08:38pm

KARACHI: Mayor Karachi Wasim Akhtar in his letter written to the Minster Finance, Chairman Provincial Finance Commission, Sindh said that the PFC formula / award should be announced as early as possible so that equitable funds could be released to all Local Councils of province including KMC.

He said the government should provide the additional funds to all councils in the province till the finalization of PFC award to the extent of payment of salaries and to provide basic municipal services to their citizens in the first instance, said a statement issued by the KMC here on Wednesday.

He said the PFC entails that distribution between the Government and the Local Councils should be a factor/proceeds of the Provincial Consolidated Fund (PCF) into a Provincial Retained Amount (PRA) and a Provincial Allocable Amount (PAA) to be called Provincial Commission Award.

Thus, Government of Sindh should first of all declare categorically the amount of PCF into PRA and PFC/Local Councils through the PFC Commission which is the basis of PFC award, he added. The Mayor said once the share between PRA and PFC/Local Councils has been decided by the PFC Commission, Government should then immediately convene PFC Commission for recommendation on the PFC.

He said after the due share of PFC has been decided and share of local councils determined, the government of Sindh should decide the share of municipal development funds out of total Provincial Annual Development Program/Budget on the pattern of KPK PFC which decided to apportion 30 per cent of the total KPK Provincial ADP and due consideration should be given to KMC considering its population and area.

The Mayor said also suggested that the PFC Commission shall take into account the principles of population, backwardness, need and the performance of a council before announcing/recommending the PFC award.

He said in such situation, it is urgently required that the issue of distribution between the government and the councils out of the proceeds of the Provincial Consolidated Fund into a Provincial Retained Amount and a Provincial Allocable Amount to be called the PFC Award, be decided immediately.

He requested to provide additional grant in aid/ or enhance OZT to further RS 200 million per month in addition to existing financial share(OZT Rs132.686 and Grant in Aid Rs. 300 million total RS. 432.686 (million) thereby making total government receipts to Rs. 632 million per month so that KMC could survive till a fair and transparent PFC Award is announced.