Islamabad:
Days before the single session of the 11th National Finance Commission (NFC), Khyber-Pakhtunkhwa (KP) has demanded a change in the formula for the distribution of resources between the four federal units by drastically reducing the participation of the population and including the reference points of the afforestation and prosperity.
Up to 82% of the resources are distributed among the provinces based on the population and 10.6% on the basis of delay, which must be changed, said KP finance minister Muzzammil Aslam, over the weekend.
I was talking in a seminar organized by the Federation of Chambers of Commerce and Industry of Pakistan (FPCCI) from the Prosper Pakistan platform. He added that the provincial government would require changes in the formula of the distribution of horizontal resources between the federal units in the NFC forum.
“The provincial government will seek to reduce the participation of the population and the inclusion of afforestation as an important reference point,” said Asm. His statement occurred two days after the president constituted the 11th NFC and a few days before the first scheduled session of the Constitutional Convention.
The Federal Minister of Finance, Muhammad Aurengzeb, would preside over the meeting.
Asm’s opinions about the reduction of population participation are similar to those expressed by Planning Minister Ahsan Iqbal. The Planning Minister has proposed to freeze the number of people by 241.5 million for the purposes of the NFC Prize and also reduce 60%participation.
IQBAL has also proposed to include afforestation and climatic changes as criteria for the distribution of resources between the provinces. Climate changes are also causing sudden floods and there is a demand to set aside a part of the federal divisible group not distributed to build large dams.
Mian Anjum Nisar, former president of the FPCCI, said that great dams were also needed for agricultural water storage facilities and that agriculture is a provincial issue, the four provinces should contribute funds under the new NFC award.
The NFC has been constituted by evolving consensus on the vertical and horizontal distribution of financial resources. According to the vertical formula, the provinces obtain 57.5% of shares and the rest goes to the federal government.
After paying provincial actions under the NFC, the remaining income is not even enough to cover two higher expenses, debt and defense service.
The two -day FPCCI conference had been organized by the KP Peshawar Regional Office in collaboration with the KP Investment and Commerce Board together with other interested parties. Prosper Pakistan’s team, led by Hiba Fawad and even Ali Syed, organized this conference for which representatives of cameras from all over the country participated.
Aslam said that it was not yet known if the NFC award would be a continuation of the 7th NFC Award or a new debate would begin in the distribution of resources under the 11th NFC award.
He said there were 12 current hydroelectric projects in the province to generate cheaper electricity at 8 cents per unit. However, the Government has increased wheels charges up to RS27 per unit in an attempt to block the cheapest electricity in the province, he said.
He said that the Indo River System authority (IRSA) distributed 110 MAF of water among the provinces, and it was agreed that four channels would be built, but the left bank canal could not be built.
In 2009, at the time of the 7th completion of the NFC award, the federal government had promised to finance the project of the left bank channel, but the promise is still not complied with
KP’s Minister of Finance cited Ahsan Iqbal saying that the federal government was heading towards the economic collapse in a period of five years because the national kitten was empty and that the federal development budget was less than Punjab and Sindh.
However, one of the reasons for low income and high-budget deficits was that the FBR could not increase its 15% GDP relationship for 2015. The FBB Tax- / GDP ratio remains 10.2%.
The government has been making strange decisions. He has given three charges to a member of FBR, Hamid Atiq Sarwar. Hamid is a member of the strategic transformation of the member, the member interior income operations and the surprisingly interim executive director of Pakistan Inss Automation Limited, which is purely a technical work.
Muzammal Aslam said that the National Highway Authority (NHA) was used to undertake road development projects in the largest provinces of Punjab and Sindh and ignored the federal government KP and Baluchistan.
The imbalance in the development approach has aggravated the situation in the smallest provinces, he added. He criticized the federal government for claiming deforestation in the province and declared that the KP government increased its budget since there are 45% of Pakistan forests in KP.
