Centre trims share of Sindh in GDS

KARACHI - The Sindh government has strongly protested against federal government over reduction of Sindh's share in the Gas Development Surcharge, The Nation learnt on Thursday. The provincial government has decided to raise the issue in the upcoming maiden meeting of the National Finance Commission, official sources told The Nation. The concerned officials of provincial finance department confirmed that Sindh government had already taken up the issue with the high ups of federal government but they did not respond positively. Without taking into confidence to provincial authorities, the federal government had further reduced the share of Sindh in GDS in current FY2008-09, official said.  Giving the detail of federal receipts under Gas Development Surcharge official said the Sindh had received Rs15.620 billion in financial year 2005-06 while due to increase in the production and hike in prices of gas, the share of Sindh jumped to around Rs22 billion in FY2006-07. But during last two fiscal years, the federal government had transferred much less amount than actual share of Sindh under GDS, official regretted. Instead of making rational increase in Sindh's share, the federal government had reduced its share to the level of Rs11.328 billion in current FY09 against actual receipts of Rs14.422 billion of last FY08, which showed that Sindh suffered Rs1.186 billion deficit on account of GDS. Official reminded that the previous provincial government led by PML-Q had also lodged protest against this reduction of share in GDS but federal government did not entertain the complaint positively. The Sindh government has prepared a comprehensive case of GDS which would be presented before the NFC, official said, hoping that the first meeting of NFC would be held soon after the presidential election. The official argued that Sindh contributes 48 percent in countrywide production of gas but it has not been receiving judicious share in Gas development Surcharge, royalty on natural gas and crude oil. Without giving any justification and mentioning formula, Islamabad has reduced province's share, official confirmed and informed that provincial government approached the concerned authorities of federal government and sought the clarification regarding the formula. The Sindh government argued that the price of gas has increased to unprecedented level but reduction in province's share was unjustified and injustice with the people of Sindh, official remarked. Sindh government has received at least Rs8 billion less on account of Gas Development Surcharge in last financial year, official said and showed concerns that the deficit may further widen in current fiscal. Meanwhile, Qaisar Bangali who has been nominated as non-official member of Sindh in recently notified National Finance Commission while talking to The Nation said the distribution of GDS was also a contentious issue between the federal government and provinces. He said the all the contentious issues would be taken up in NFC as with consultation of provincial finance department he was preparing a comprehensive case of Sindh. Keeping in view international practices of distribution of wealth among the provinces, the multi factors criteria should be based for resources distribution among federating units of Pakistan, Bangali observed.

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