 |
| |
WEEKLY
SECTIONS |
 |
 |
 |
|
| Multiple criteria agreed for NFC Award |
|
|
|
Friday, November 20, 2009
Tarin promises ‘win-win situation’ for all provinces
By Imtiaz Ali
KARACHI: The Fifth National Finance Commission (NFC) meeting in the city on Thursday decided in principle to make population, revenue, backwardness and “inverse density population” (the less the population, the greater the allocation) criterion for the 7th NFC Award as it satisfied the demands of all the four provinces, said NFC Chairman and Federal Minister for Finance Shaukat Tarin.
It also decided to set up a fund for the North West Frontier Province (NWFP) to compensate it on account of the destruction caused by the war on terror there. This fund would be a part of “total undivided divisible pool” of the NFC, which implied that the Centre and all the provinces would contribute to it, said Tarin. He also announced that Balochistan’s arrears would be accounted for in the Balochistan Package (now named as Aghaz-e-Huqooqe Balochistan).
He promised that there would be a “win-win situation” for all the provinces as each province would be compensated if it lost on any criteria of the NFC Award out of the four criteria.
The final decision about vertical distribution (share of the Centre and the provinces in the NFC) and horizontal distribution (share of the provinces) would likely be taken up in the 6th meeting of the NFC scheduled to be held in Lahore on Dec 9 and 10, he said while giving a briefing to newsmen after the meeting at a local hotel.
Flanked by representatives of the four provinces, the finance minister dispelled the impression that there was any deadlock in the meeting. He explained that a final decision about the vertical distribution could not be made because the participants decided to first resolve the multiple criterion issue. Besides, information about different taxes was required. He pointed out that in case of multiple criteria, the Punjab might face a financial loss that would be compensated through vertical distribution, which first necessitated decisions about the horizontal distribution.
He said significant progress was made in the meeting as all the provinces ceded ground on their stated positions and discussed its basis. “We agreed that the NWFP residents were in need of help and we should stand with them in the war on terror,” he said. “We decided to set up a fund for the NWFP in which the Centre and the provinces would contribute.”
He said revenue was accepted as criteria of the NFC Award, demanded by Sindh. However, there was difference of opinion about making “revenue generation” (demand of Sindh) or “revenue collection” (demand of the Punjab) as criteria. He said both these positions were valid and it required research and data of taxes to decide about a practical formula. He said four criteria for the NFC Award had been accepted but its percentage and weightage would be debated and decided in the forthcoming meeting in Lahore.
Tarin said there was an agreement on horizontal distribution as the provinces made a compromise in their stated positions. He said the Punjab should be given credit for debating other criteria, which reflected its openness. He also appreciated the three provinces, which compromised on their stated positions.
He said they wanted that the new NFC Award should be fair for all the provinces. The Centre was striving to give the maximum powers to the provinces and this was their philosophy on which they were working. He also appreciated Sindh for its positive attitude and hospitality.
Responding to a question, Tarin said when they accepted revenue as criteria for the new NFC Award, it meant that Sindh’s demand had been accepted.
About compensating Sindh for the influx of population from other provinces, he said these people were also contributing to the economy of the province. He said if these people earn Rs 300, they spend Rs 200 here. Besides, the Constitution of Pakistan allowed the citizens to live wherever they wanted to live in the country. He said this issue was also debated in detail in the NFC meeting as Sindh strongly felt about it.
Asked as to how the provinces would be given more share in the NFC Award, the finance minister said they wanted to increase the size of the cake. He said when tax-to-GDP (gross domestic product) ratio would be increased, it would also increase the size of the cake. Besides, the Centre was striving to reduce the administrative expenditure through austerity measures. He said the federation had to reduce expenditure as percentage to the GDP.
When Tarin said that compensation on account of the war on terror for the NWFP would be at the “top of the divisible pool” followed by four criteria, he was asked by media men to explain this as it created confusion that the war on terror was being made part of the NFC, though terrorism might end in months while the NFC Award was for five years.
Tarin explained that funds to the NWFP would be given through undivided divisible pool and it would be notional. He opined that the war on terror was a long-term problem and it might continue for three-five years.
Tarin said this fund would not be part of horizontal distribution. He said this was not an unusual thing as such practice had also taken place in 1970s. He said Sindh wanted revenue collection while other provinces wanted revenue generation as criteria. He said Punjab’s stance was that factories were located in the Punjab but their head offices were located in Karachi. He said “what fairness demands and what makes sense” in such a situation, it would be decided in Lahore.
He said the Value Added Tax (VAT) would be the modern form of General Sales Tax (GST) and there would not be both taxes. There would be only one tax. The GST on services would be given to provinces and the GST on goods was a federal subject, he said.
Sindh’s representative to NFC Kaisar Bengali said for the first time, multiple criteria had been accepted in principle. And for the first time, revenue has been accepted as criteria for the NFC Award. He said the data for income tax, corporate tax and other taxes that was available at the Federal Board of Revenue would be collected for revenue criteria. He said how backwardness (demand of the NWFP) would be assessed would be decided in the Lahore’s meeting in the context of whether to look into “below the poverty line” or “human development index”.
He said Sindh would be benefited both by revenue collection that was 60 per cent in Sindh and revenue generation that was 40 per cent. While at present, Sindh was being given only 23 per cent share. He said Sindh would also get benefits under the backwardness criteria as the province was backward.
He said it was not the demand of Sindh to compensate it on account of migration from other provinces. He added that it had been decided that the provinces’ share would be over 50 per cent in the divisible pool.
Senator Haji Adeel, NWFP’s representative in the NFC, complained that only “token money” was being given to the province on account of the destruction caused by the war on terror. He said because of the war on terror, around 2,500 factories had been closed in the NWFP. He said the NWFP needed help financially and morally in these testing times as they were fighting the war for all.
Punjab’s Finance Minister Tanveer Ashraf Kaira said the Punjab was satisfied with the outcome of the meeting. He said it was their demand that revenue generation should be made criteria. Balochistan’s Finance Minister Asim Kurd said his province had been ignored in the past. He said in “inverse density population” criteria, Balochistan’s share would be 82 per cent.
|
|
|
| Back
| Send
this story to Friend | Print
Version |
|
|
Three killed as Sh Rashid escapes attempt on life
By Shakeel Anjum
RAWALPINDI: Awami Muslim League (AML) Chief and a candidate for NA-55 (Rawalpindi) by-election Sheikh Rashid Ahmad was wounded, while three people — a guard and two party workers — were killed when four gunmen more |
|
|
12 soldiers killed in South Waziristan
ISLAMABAD: Twelve soldiers embraced martyrdom while two others were injured in a clash with militants during the ongoing operation Rah-e-Nijat in South Waziristan Agency (SWA), the ISPR said on Monday.
S more |
|
|
Plan to attack five-star hotel foiled
By our correspondent
LAHORE: The CIA police here on Monday claimed to have foiled an attack on Americans staying at a five-star hotel and arrested six terrorists, including a suicide bomber.
Addressing a press conference, SS more |
|
|
Govt taking court for a ride
By Ansar Abbasi
ISLAMABAD: She fought her case in the media. She won her battle in the judicial forum too. But still the government is bent on making an example out of her for refusing to follow the illegal dictates of her min more |
|
|
Pakistan against arms race: Gilani
By Azeem Samar
KARACHI: Prime Minister Syed Yousuf Raza Gilani on Monday said Pakistan does not want to be engaged in an arms race with any country.
Speaking as chief guest at the induction ceremony of second Chinese-m more |
|
|
|
Punjab-Sindh water row Centre’s intervention sought
By our correspondent
ISLAMABAD: Tension between Punjab and Sindh over opening of the Chashma-Jhelum and Taunsa-Punjnad link canals has touched a new high as the former has sought the Centre’s intervention.
The Punjab has sai more |
|
|
|
French, Dutch fight over giving LNG to Pakistan
By Khalid Mustafa
ISLAMABAD: Finance Minister Shaukat Tarin and his team is all set to thwart the attempt of an unscrupulous combine of oil industry heavyweights and some functionaries of the Ministry of Petroleum and Natural Re more |
|
|
|
Nine killed as no let-up in rains
By Nisar Mahmood
PESHAWAR: Nine people were killed and scores of others injured as heavy rains and snowfall lashed various parts of the country for the fourth consecutive day on Monday.
Reports from the Shangla district more |
|
|
|
Malik orders NUML closure as protest enters 5ht day
ISLAMABAD: The protest of the students of the National University of Modern Languages (NUML) against thrashing of Professor Malik Tahir by Registrar Brigadier (R) Obaidullah Ranjha entered its fifth consecutive more |
|
|
|
Malik insists no Blackwater in Pakistan
By Muhammad Anis
ISLAMABAD: Interior Minister Rehman Malik while responding to an accusation from a PML-N parliamentarian told the National Assembly that Blackwater was not providing security to the president and the prime mini more |
|
|
|
FBR gets list of properties rented out to foreigners
By Hanif Khalid
ISLAMABAD: Federal Board of Revenue (FBR) has received list of properties from Foreign Office, which were in use of foreigners in Islamabad, Karachi, Peshawar and Lahore, but these were not shown in annual tax more |
|
|
|
Repealing of 17th Amendment
By our correspondent
ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani has begun efforts to create consensus on repealing the 17th Amendment before presidential address to the joint sitting of the parliament.
The prime minis more |
|
|
|
Three suspects held in Mohmand
By our correspondent
GHALLANAI: The security forces arrested three suspected persons during search operation in Safi subdivision of Mohmand Agency, official sources said Monday. The sources said the security forces carried out sear more |
|
|
|
No presence of Blackwater, DynCorp in Pakistan, NA body told
ISLAMABAD: Secretary Interior Qamar Zaman again negated on Monday the presence of Blackwater, DynCorp or any other foreign security agency in the country. “Neither the Blackwater and the DynCorp nor any other s more |
|
|
|
Govt urged to take up water issue with India
By Asim Yasin
ISLAMABAD: Pakistan Muslim League-Q, Parliamentary leader in the National Assembly, Makhdoom Faisal Saleh Hayat while urging the government to take up the issue of ‘water terrorism’ with New Delhi, has question more |
|
|
|
Avalanche kills 17 Indian soldiers in held Kashmir
HELD SRINAGAR: Seventeen Indian soldiers were killed on Monday in an avalanche that slammed into a group of 70 combat troops at a high-altitude warfare training camp in Kashmir, the army said on Monday.
more |
|
|
|
Taliban defiant as Afghans flee ahead of assault
KANDAHAR: The Nato commanders urged the Taliban to surrender as troops dug in on Monday for a major assault on their key stronghold in southern Afghanistan, sending thousands of residents fleeing.
The Ta more |
|
|
|
Plea to freeze foreign accounts
By our correspondent
LAHORE: The Lahore High Court (LHC) on Monday ordered the federal government to submit a reply within four weeks on a petition seeking freezing of accounts in foreign banks and recovery of illegal assets accumu more |
|
|
|
Attack on Sh Rashid
RAWALPINDI: The PML-N candidate for by-polls from NA-55, Malik Shakil Awan, has announced suspension of electioneering for a day to mourn the death of those killed in the attack on the office of his rival, Shei more |
|
|
|
Indian forces to halt Kashmir rally outside UN office
HELD SRINAGAR: The held Kashmir authorities deployed thousands of police and troops on Monday to prevent a protest outside the UN office here over the recent killing of two teenage boys by Indian security force more |
|
|
|
briefs...
20 die in Afghan floods, avalanches
KANDAHAR: Twenty people have died in floods and avalanches triggered by some of the heaviest rain and snow in Afghanistan for 50 years, an official said on Monday. At more |
|
|
|
ISSN 1563-9479 
