ISLAMABAD/PESHAWAR – National Finance Commission (NFC) is to open up its maiden but stormy session here today (Thursday) with Finance Minister in the chair and four provinces sticking to their conflicting demands.
According to relevant officials, on the first day, the NFC would give only hearing to the respective provincial vantage points, while on the second day there would be rap-up discussion on an amicable formula for distribution of resources between Centre and the provinces.
The officials told TheNation that three provinces namely Punjab, Balochistan, and NWFP, were unanimous in opposing the demand of Sindh to give overwhelming weightage to the revenue generation as against existing base of population. They said that Punjab was ready to give marginal weightage to the revenue generation, besides other considerations like backwardness and war on terror. At the same time the smaller two provinces, Balochistan and NWFP, are not ready to give any consideration to the revenue generation.
Moreover, Blochistan and NWFP are also opposing the demands of each other. Since NWFP is insistently demanding to resolve the issue of net hydel profit under the NFC. The members from Balochistan have observed that the net hydel profit comes under the Article 161 of the Constitution while the NFC works under 160.
Dr Gulfraz who is non-official member of the NFC from Balochistan, has reportedly said that the NFC was constituted to award a formula for division of the divisible pool of resources between Centre and the provinces under Article 160 of the Constitution, while the profit on electricity is dealt with under Article 161.
Meanwhile, Senator Haji Adeel the non-official member of the NFC from NWFP pointed out that the previously the NFC had sent the issue of the provinceÂ’s share of hydel profit to an appointed tribunal.
The provinces are also likely to ask for increasing the provincesÂ’ share in the divisible pool of resources. According to the annual budget statement of 2009-2010, the it is 45 per cent but it actual make nearly 47 after adding up aid in grant and one sixth share from the general sales tax. The provinces are most likely to demand from the government to increase their share in the divisible pool up to 49 per cent if not 50 per cent, the officials said.
Meanwhile, the ruling and opposition parties of the NWFP in a unanimous resolution have asked the federal government to fulfil all outstanding demands of the province including the much-awaited National Finance Commission (NFC) Award, Provincial Information Minister said on Wednesday while briefing the media persons.
Provincial Information Minister Mian Iftikhar Hussain said that the resolution was passed in a joint meeting under the chair of NWFP Chief Minister Amir Haider Khan Hoti. He said that all the parties in the meeting vowed that they would not compromise on the provinceÂ’s due share in the NFC Award and other rights. He further said that all the parties had decided that they were united on the issue of provincial rights and NFC Award and could launch a joint struggle for the cause.
The NWFP Information Minister Mian Iftikhar Hussain said that the objective of convening the joint meeting was to take all the political parties into confidence over the issues. He also informed that all the parties had decided that the NWFP government should participate in the NFC Award meeting and fight for the provincial autonomy and net hydel profit.
“Today’s meeting has proved that despite their differences, all political parties in the NWFP are united on the issue of the rights of the province,” the minister added.
Meanwhile, opposition parties also held a separate press conference on the issue and said that they had attended the meeting because they felt there was a dire need to chalk out a joint strategy for achieving the rights of the province.
JUI-F leader and ex-chief minister Akram Khan Durrani said that federal government was required to pay Rs 110 billion in 2005 to the provincial government. He said that now the amount had increased to Rs 251 billion. He asked the federal government to pay the amount to the province immediately to help it recover from the losses incurred to it during the anti-terror war.
JI provincial president Sirajul Haq said they were ready to support the provincial government on the issue, as it would help the province solve its problems.
APP adds: The NWFP government, with the consultation of leadership of all political parties, has decided to participate in the NFC Award meetings with demand of early payment of dues of the province under the head of net hydel profit and giving it an additional share of five per cent from divisible pool as compensation for the losses incurred to the province due to war against terrorism.
The decision was taken at an All Parties Conference (APC) convened by provincial government.
The resolution further reads as the NWFP Province has suffered huge losses due to fight against terrorism and therefore the provinceÂ’s should be given an additional share of five per cent from national resources.
About the NFC Award, the conference decided that distribution of national resources should be made as 80:20 ratio. The provinces should be given 80 per cent resources and 20 per cent to centre.
In the resolution, the all parties conference also demanded payment of Rs 210 billion as NWFPÂ’s share in net hydel profit in accordance with the decision of arbitration tribunal in 2005.
Similarly, it was also demanded from centre to increase annual share of NWFP under the head of net hydel profit from Rs Six billion to Rs 38 billion as decided by arbitration tribunal.
NWFP Information Minister said if these demands of NWFP were not fulfilled than sitting in NFC Award meetings would be a futile exercise.
He said the meeting also observed that Terms of References (TORs) for the upcoming NFC Award meeting should have been decided with the consultation of provinces.