ISLAMABAD
The federal government has finally received the nomination from Sindh for the much-awaited 8th National Finance Commission, which might pave way in constituting the new NFC award before upcoming budget.
“Federal Minister for Finance Senator Mohammad Ishaq Dar sent the proposal to the President of Pakistan through the Prime Minister for the constitution of the 8th National Finance Commission (NFC) as Government of Sindh has now nominated Saleem Mandviwala as its member”, said a statement issued here. The matter was pending from last several months as government of Sindh was deliberating on the name of the candidate.
The other provinces have already nominated their members two months before. Besides the Federal Minister for Finance Ishaq Dar and four provincial Finance Ministers, the other members are Ms Ayesha Ghous Pasha from Punjab, professor M. Ibrahim Khan from KP and Qaisar Bangali from Balochistan.
The first meeting of the Commission will be held as soon as the President approves its constitution.
The law, called Distribution of Revenues and grants in-Aid Order, was promulgated in 2010 through a presidential order. The 7th NFC Award guarantees provinces’ share at 57.5 percent of net federal tax receipts. According to the provisions of Article 160 of the constitution, which states “the President shall constitute a National Finance Commission consisting of the Minister of Finance of the Federal Government, the Ministers of Finance of the Provincial Governments, and such other persons as may be appointed by the President after consultation with the Governors of the Provinces,” the constitution of the NFC has been proposed.
Under Article 160 of the constitution, President of Pakistan has to constitute National Finance Commission before expiry of the current NFC Award. The current (7th) NFC award would expire by the end of June 2015. Sources informed The Nation that the NFC has to be constituted before May 20, five years to the date when former President Asif Ali Zardari promulgated the 7th NFC Order. They added that the federation will try to win back some of the concessions that it had given to the provinces under the 7th award. It cannot reduce provincial shares below 57.5%, as it has been guaranteed in the constitution. But the Centre will try to shift some of its expenditures onto the provinces.
According to the 7th NFC formula, Punjab’s share stood at 51.74 percent, Sindh 24.55 percent, KP 14.62 percent, including one percent as share of war against terror, and Balochistan 9.09 percent. The centre had estimated to transfer Rs1.72 trillion to the four provinces under the NFC award in the ongoing financial year.
According to the budget estimates, Punjab is supposed to receive Rs812.786 billion, Sindh Rs464.007 billion, KP Rs283.68 billion and Balochistan Rs159.71 billion.