Tag Archives: National Finance Commission

Punjab seeks lion’s share from so called federal pool of NFC, ..earned from resources of Sindh

The demand for new NFC

By Khalid Hashmani, McLean

Pakistani newspaper reported that ANP-led provincial government of NWFP will pursue a new NFC Award Formula based on multi-factors. Their proposed formula will give weight to “Population”, “Poverty”, “Infrastructure” and “Presence of Afghan refugees“. I would recommend that the NFC formula be enhanced to include “Revenue Collection” and “Presence of all refugees/migrants from other provinces and countries”. I believe that this enhanced formula would be fair to all provinces as it will not only meet unique requirements of each province but also help the poverty-stricken and backward areas to overcome these deficiencies.

Continue reading Punjab seeks lion’s share from so called federal pool of NFC, ..earned from resources of Sindh

Pakistan’s National Finance Commission (NFC) Awards – A tool to exploit Sindh

By Naseer Memon (English Translation by: Khalid Hashmani)

[Backdrop: As the Pakistani establishment including their new political party partners mull over the upcoming NFC award, the people of Sindh have dug their heals and want that the awards be fair and follow the best practices of other similar countries such as India. The grass-root political workers from all political parties in Sindh who have long criticized the inequalities of NFC award are joining hands to bring an end to the exploiting aspects of the award. In this backdrop, SaeeN Naseer Memon has once again written a timely and detailed analysis of the exploiting nature of current NFC awards. He urges the ruling party that as the inequities in the form of NFC started after 1973 constitution when PPP was in power; the time has come for PPP to play its role in correcting this historic form of exploitation and restore fairness to all provinces. It is hoped that the information in this article would enable those who are engaged in lobbying and advocacy activities on behalf of Sindh to get it in front of decision makers and influencers. ]

Basic inequities of Current NFC Awards

The critical inequities of the NFC award lie in three areas – first it is distributed solely on the basis of population, second it covers almost all of the revenue generation in Pakistan, and third it enables the federal government to keep a lion’s share for itself.

How Pakistan and other countries collect and distribute revenues to Provinces?

In 1974, 1979, and 1990 NFC awards, provinces received 80% of total revenue collected and 20% was kept by the federal government. However, starting 1996 during the rule of an interim government headed by PPP’s Miraj Malik and when the Chief Minister was Mumtaz Bhutto, the federal share was drastically increased to 62.5% leaving only 37.5% for the provinces.

Continue reading Pakistan’s National Finance Commission (NFC) Awards – A tool to exploit Sindh

Poverty highest in Punjab, NFC told – Punjab needs more money – Oh Yes!!

Poverty incidence highest in Punjab, NFC told

Courtesy: The News, Saturday, August 29, 2009

Two committees to finalise vertical, horizontal resource distribution

By Khalid Mustafa

ISLAMABAD: On the second day of the meeting of the National Finance Commission (NFC), the participants were in for a rude shock when they were told by Punjab that it had the highest poverty incidence in the country, even more than Balochistan. The revelation came in the form of an exhaustive presentation made by the Punjab delegates here on Friday.

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Sindh – NFC and Resource distribution

Resource distribution

By: ZULFIQAR HALEPOTO, Hyderabad, Sindh

Courtesy: daily Dawn, Saturday, 22 Aug, 2009

THE newly reconstituted National Finance Commission has been empowered to make recommendations on matters of sales tax on services (CE mode), examine the question of rationalisation of payment of royalties on crude oil and of surcharge on natural gas collected by the federal government and to develop a mechanism that can enforce fiscal discipline at federal and provincial levels.

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A call for the people of Sindh – Let us March to Islamabad on the first meeting of NFC

by: Javed Qazi, Sindh

A new National Finance Commission has been announced. Ishaq Dar has been nominated by the Punjab government to represent them. And from Sindh it is our Kaiser Bengali. It is a constitutional requirement that every five years such committee sits to set the criteria of distributing the revenues from the central pool that goes to the provinces.

The fact is that it was simply a formality sort of exercise if ever previously has been done and the criteria is always the population based. Hence Sindh receives very dismal vis a vis the amount of revenues it generates. Where as Punjab receives the more than it generates.

Not only that the eighty percent of the employees that work in the federation are from Punjab . The very federation is located in the Punjab and any development that takes place in the federal Capital, its benefits go more to the Punjab . The population of the capital has its 80 percent people from Punjab .

Even the taxes that are provincial in nature and characteristic if gauge it under the rule of law, constitutionalism for the matter under 1973 constitutions, such right has also been usurped by the central government.

If this is the spectrum it implies that Punjab and the federation is same and no one can form the government in the federation without having a support of the institutions which have predominantly a Punjab ’s representatives.

Continue reading A call for the people of Sindh – Let us March to Islamabad on the first meeting of NFC