Finance minister writes to CMs seeking NFC reconstitution

ISLAMABAD: The day after Pakistan Tehreek-e-Insaf candidate Arif Alvi won the presidential election, Federal Minister for Finance Asad Umar has written to all provincial chief ministers to seek the reconstitution of the 9th National Finance Commission (NFC), with the aim to renew efforts to fairly allocate financial resources between the Centre and four federating units.

After receiving nominations for official and non-official members of the NFC from the provinces, an official summary would be presented to Prime Minister Imran Khan for approval. Under the Constitution, the President would grant formal assent for the reconstitution of the 9th NFC after Alvi is sworn in. Formal deliberations would then take place to develop a consensus-based solution to the distribution of resources falling into the Federal Divisible Pool (FDP) between the federal government and provincial administrations.

The PTI-led government would have to resolve thorny issues related to the horizontal and vertical distribution of resources into the FDP.

The caretaker government had recommended significant cuts to the share of the provinces, raising a hue and cry in the Senate. Senior senators, notably Pakistan People's Party stalwart Mian Raza Rabbani and members from Balochistan, termed any such proposal a violation of the Constitution and the spirit of the NFC award.

According to an official announcement here by the Ministry of Finance on Wednesday, letters have been dispatched to Punjab CM Sardar Usman Ahmad Buzdar, Sindh CM Syed Murad Ali Shah, KP CM Mahmood Khan and Balochistan CM Jam Kamal Khan.