ISLAMABAD - The federal government had transferred an additional Rs 93.18 billion to the Khyber Pakhtnkhawa government under the 7th National Finance Commission (NFC) award on account of - war on terror.

The KPK has received an additional one percent of the net divisible pool on account of war on terror under the 7th NFC award. Therefore, the federal government had disbursed Rs93.18 billion to KPK during five years from 2010-11 to 2014-2015.

The KPK government received Rs14.56 billion in 2010-11, Rs 16.41 billion in 2011-12, Rs 19.05 billion in 2012-13, Rs 21.63 billion in 2013-14 and Rs 21.53 billion during (July-May) of the previous financial year 2014-2015 billion, showed the official documents of the Ministry of Finance.  

It is worth mentioning here that the percentage share of KPK was enhanced from 13.82 percent to 14.62 percent in the 7th NFC, which was announced in 2009. Besides its regular share, the government has received an additional 1 percent of the net divisible pool on account of war on terror during the currency of 7th NFC Award. 

The KPK government had already demanded to increase their share in 8th NFC award, as they said the province is the front player in fighting terrorism. “We want the federal government to enhance our share on war on terrorism allocation to 3 percent from existing one percent in the next NFC award”, said an official of the KPK government.

The PML-N government had failed to constitute 8th NFC award before the start of current financial year (July 2015), which led to the extension of the previous award. The government held maiden meeting for the new award in April this year and no further development has been made so far. 

According to official documents, the provincial government of KPK received Rs 1118. 877 billion from divisible pool taxes (excluding war on terror) in fiscal year 2010-11, which in the subsequent fiscal year 2011-12 increased to Rs 136.585 billion, and Rs 158.520 billion in 2012-13. In 2013-14 Rs 180.013 billion was disbursed under this head. The provincial government received Rs 179.195 billion till May 31, 2014-15. The provincial government received straight transfers of Rs 24.491 billion in 2010-11, Rs 25.913 billion in 2011-12, Rs 22. 041 billion in 2012-13, Rs 32.760 billion in 2013-14 and up to Rs 22.164 billion in 2014-15 till 31.5.2015.

The provincial governments get shares from federal government under NFC award as per the said formula, Punjab gets 51.74 percent, Sindh 24.55 percent, Khyber Pakhtunkhwa 14.62 percent and Balochistan 9.09 percent.