ISLAMABAD - Provinces on Tuesday threatened that they would move to the Supreme Court against the federal government if it failed to finalise the 8th NFC award.

“If the federal government is not ready to take result-oriented step then the provinces will unanimously request the prime minister to play his role,” KP Finance Minister Muzaffar said this in a media briefing after the consultative meeting to finalise recommendations for the upcoming 9th Finance Commission meeting.

The meeting was chaired by KP Finance Minister Muzaffar Said and was attended by the representative of Sindh, Senator Saleem Mandviwala, Finance Secretary Punjab Saifullah Dogar and KP NFC member Professor Ibrahim. 

The provinces also demanded to increase provincial share from the current 57.5 per cent to 80 per cent to enable the provinces for taking care of its increased responsibilities after the 18th amendment.

Muzafar demanded the federal government to urgently convene a meeting of 9th Commission to finalise their recommendations for the 8th NFC award.

The 7th NFC award was finalised in 2009 and the new finance award should have been implemented in 2015 but it didn’t happen and the provinces are still getting their share according to the 7th NFC award, he said. 

He said: “We have already written a letter to the President of Pakistan for finalisation of 8th NFC award and now we have decided to write a letter to the Prime Minister for the resolution of the issue.”

It was agreed in December 2016 that the meeting of the 9th Finance Commission will be held in January 2017 but no meeting has been convened so far, the KP finance minister maintained.

He said that Finance Minister Ishaq Dar is using delaying tactics by holding the provinces responsible for the delay. Ishaq Dar had tried to misguide the parliament and in his budget speech he had said that the federal government wanted to allocate 7 per cent allocation for the National Security Fund and special areas such as FATA, AJK and G-B but the provinces are not cooperating.

“During a meeting on the NFC held in December, we have asked the finance minister to provide details about the 7 per cent allocation for security and special areas but so far no details have been provided so far,” he maintained.

“We don’t have any problem regarding the 7 per cent allocation as it is responsibility of the federal government to spend funds from the divisible pool for national security and special areas,” he said. He demanded the federal government to convene the meeting of 9th finance commission so that recommendations could be finalised for the 8th NFC award.

He said that there is no interpretation about the tenure of NFC award in Article 160 of the constitution. “To find a legal solution, the provinces are ready to knock at the door of the Supreme Court,” he added.

KP finance minister said that in the first four NFC awards the provinces were getting 80 per cent share while 20 per cent was going to the federal government. In 1997 the provincial share was reduced to 57.5 per cent and the federal share was enhanced to 42.5 percent. After the 18th amendment the responsibilities of the provinces have increased therefore the federal government should allocate 80 per cent share to the provinces, he maintained.

When asked that the financial responsibilities is shared with the ratio of 65 and 35 per cent respectively between the federal and provincial governments then how they will justify the demand of 80 per cent share, Prof. Ibrahim said that it is wrong to say that federal government is taking 65 per cent financial burden.” After the 18th amendment health, education, tourism etc were devolved to the provinces, we didn’t ask the federal government to increase its burden by making new divisions and ministries,” Prof. Ibrahim said. Why the federal government is still holding higher education with them, they should transfer HEC and funds for health to the provinces to reduce its burden, he added.

To another query regarding a proposal of the chairman Senate to deduct one per cent each year from the federal government share if they don’t implement the NFC award on time, Prof. Ibrahim said yes the provinces demanded for it.

To another query whether Punjab has supported the move of going to the Supreme Court, he said yes they are standing with other provinces.