Rabbani rejects Ahsan Iqbal’s call for NFC realignment

ISLAMABAD: Former Senate chairman Raza Rabbani has taken strong exception to a letter from Federal Minister for Planning Prof. Ahsan Iqbal to Prime Minister Shehbaz Sharif, titled “Urgent Need for Review of the NFC Award and Realignment of Fiscal Federalism.”

Rabbani said no realignment of fiscal federalism can be effected through a letter or by executive fiat. Any realignment is confined to the parameters defined in the Constitution of 1973, he said in a press release on Friday.

Raza Rabbani said there is a need to increase the allocation of financial resources to the provinces in the new NFC Award.

Rabbani also warned that the letter attempts to suggest constitutional changes by claiming that Azad Jammu and Kashmir, Gilgit-Baltistan, the newly merged districts, and the Islamabad Capital Territory are funded from the federal share and are entitled to their share in the divisible pool, just like the provinces.

“This amounts to compromising Pakistan’s constitutional position, and in terms of international law, would require a constitutional amendment,” he stated.

“These areas fall under the administrative control of the federal government and are not mentioned in Clause (2) of Article 160 of the Constitution. Is the minister suggesting a constitutional amendment?”

“The heading ‘Reforming the Distribution Formula, from Demographics to Development’ refers to issues that must be discussed and agreed upon within the NFC,” he said.

In conclusion, he reminded the Prime Minister to keep in mind Clause (3A) of Article 160 of the Constitution, which clearly states:“The share of the provinces in each Award of the National Finance Commission shall not be less than the share given to the provinces in the previous Award.”