Sindh, Balochistan CMs won’t attend NFC meeting

ISLAMABAD: Finance Minister Ishaq Dar will chair a meeting here on Monday to discuss the National Finance Commission-related issues, specially provincial reports regarding the NFC and the federal government’s proposal to establish national security fund comprising three percent of the divisible pool.

Chief ministers of Sindh and Balochistan, who are holding portfolios of finance ministry in their provinces, will not be attending the meeting, The News has learnt. 

Balochistan CM Sanazullah Zehri is in Dubai and Chief Secretary Saifullah Chattah will represent the province in the meeting. 

CM Sindh Murad Ali Shah, till the filing of this report, was also in Dubai to attend his party meeting summoned by Co-chairperson Asif Ali Zardari. Senator Salim Mandviwala told The News that CM Sindh would not be attending the meeting.

New member Professor Ali Cheema will represent Punjab.  At least two provinces, KP and Sindh, want to have the right to collect GST on goods as they were collecting on services. 

All the provinces are, however, unanimous that the 7th NFC Award should be finalised as soon as possible, sources told The News.    Sindh Private Member Senator Salim Mandviwala stated that any effort to make CPEC part of the NFC was not acceptable to Sindh.

CPEC is a federal issue and its burden should not be put on the provinces. Moreover, security fund comprising three percent of divisible pool will not be allowed as it will cut the provincial resources, he added. Law and order is the responsibility of the federal government and it should fulfill it from its resources, he said. He was of the opinion that there would be income from CPEC and the federal government should use this income to meet the security requirements of CPEC.

Punjab Finance Minister Ayesha Ghaus Pasha talking to The News said the meeting has been called to update reports prepared by the provinces as many issues raised by the provinces had already been addressed. She gave the example of baynami law and taxation issues that are being addressed. About the provinces’ demand to give them the right to collect GST on goods, she said Punjab was very clear in this regard as the provinces should remove lacuna in collection of GST on services and other things. First the provincial governments should complete their homework then ask for the policy decision, she added. 

KP private member Senator Professor Ibrahim, while talking to The News, said the federal government has summoned the meeting to discuss the NFC-related issues but the NFC Award is not on agenda. We will press the federal government to summon the NFC Award meeting as soon as possible, he said adding that any effort to curtail the provincial share in divisible pool would be blocked.

“Today (Monday) we would hold a meeting of KP Finance Department and decide future action on federal government’s delay to discuss and bring new award. “ While contrary to this there is a strong opinion in the Federal Finance Ministry that provinces are already getting enough resources under the 6th Award (57.5 percent of divisible pool) so there is no need to finalise the new award, The News has learnt.