ISLAMABAD -  Sindh has asked the federal government to constitute a new National Finance Commission (NFC) Award before the next budget amidst much delay in finalizing the revenue-sharing formula between the centre and the four provinces.

“The federal government should constitute a new NFC Award before the budget," said non-statuary member of Sindh for NFC Senator Saleem Mandviwalla. He said that Sindh was demanding to restore the federal excise duty (FED) on crude oil and collection of sales tax on goods and royalty on oil, and gas should be given to provinces.

The federal government has summoned the NFC meeting on Monday, which would be chaired by Finance Minister Ishaq Dar and provincial finance ministers and non-statuary members would attend the meeting. Mandviwalla said that the Sindh government would present its case at the NFC meeting.

The federal government has not constituted the NFC Award for the last one-and-a-half-year. The 7th NFC Award expired on June 30, 2015; however, the federal government extended the 7th award for the previous as well as the ongoing financial years after failing to thrash out a new formula.

The federal government had constituted the finance commission on April 24 last year and it held its first meeting on April 28.

Under the current NFC Award, Punjab gets51.74 percent share, Sindh 24.55 percent, Khyber-Pakhtunkhwa 14.62 percent and Balochistan 9.09 percent from the federal government in the divisible pool.

In August, Dar had assured the provinces that the new NFC Award would be constituted by December this year. Sources in the Ministry of Finance told The Nation that the federal government was not happy with the working of the provincial governments. The sources said that reports compiled by provincial governments were inconclusive and lacked broader ownership.

The centre had formed four working groups on resource mobilisation, devolved versus integrated tax structure; allocation efficiency and expenditure analysis and rationalisation of subsidies and grants have been completed.

In the current round of NFC negotiations, the federal government will seek an agreement to better balance devolution of revenue and expenditure responsibilities in a way that is in consistent with macroeconomic stability.