Sindh CM criticises center for proposal to cut federal divisible pool

KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Wednesday said that the proposal of allocating seven percent funds from federal divisible pool for the security arrangement of CPEC –related projects and for the development of FATA and other areas is unconstitutional and would establish a wrong precedent, therefore all the provinces should oppose the proposal collectively. 

He said this wile discussing NFC issue with Finance Minister of Punjab Dr Aisha Ghous who called on him here at the CM House.

The chief minister said the proposal of the federal government to allocate three percent funds from Divisible pool for CPEC-related security force and four percent for the development of FATA, Gilgit-Baltistan and Kashmir is unreasonable and against the constitution.

"The divisible pool is only for distribution of collected funds amongst the provinces." 

The Sindh chief minister was of the opinion that the federal government has already allocated one percent funds from the divisible pool for maintenance of law & order in Khyber Pakhtunkhwa and now they are seeking the consent of the provinces to allocate three percent for the security of CPEC projects and four percent for the development of FTA, Kashmir and Gilgit Baltitistan.

"This is an unconstitutional demand and cannot be met," he said adding that  the share of all the four provinces in the divisible pool comes to 57.5 percent and the remaining 42.5 goes to the federal government".

The Sindh government has already raised a force of 2000 ex-army men to provide security to the projects and employees of CPEC projects. Apart from it, he said, the Sindh government has spent Rs300 billion on maintenance of law and order right from 2010-11 to 2015-16.

“I would request to the Punjab government, KPK and Balochistan to develop consensus and oppose the proposal,” he said. The Punjab Finance Minister, Dr Aisha Ghous assured the chief minister Sindh that she would support him.

Sindh Chief Minister Syed Murad Ali Shah also said that the provincial governments should have the right to collect sales tax on goods and then deposit the same with the federal government for onward distribution among the provinces according to their agreed share.