PFCs yet to be constituted for resources’ distribution

ISLAMABAD: After completing phased wise local government elections in Punjab and Sindh, the provinces will have to constitute Provincial Finance Commission (PFC) in their respective federating units for devising formula to distribute resources among provincial and district governments.
But so far the PTI-led KP government is on top as its PFC has recently finalised a formula for distributing resources among the provincial and districts governments.
Punjab and Sindh had envisaged PFCs in their respective Local Government System (LGS) but they have not yet reconstituted this forum. Without proper resource distribution formula, the local government system will remain a futile exercise that aims at delivering basic social services at gross roots level.
Although, the federal government had so far failed to re-constitute National Finance Commission (NFC) award mainly because of absence of technical member from Punjab but for time being an interim arrangement is in place to continue resource distribution among the Center and provinces as well as within the provinces on the formula agreed during the PPP-led regime in 2010.
When Sindh’s member into NFC Senator Saleem Mandviwalla was contacted, he said that they were waiting for reconstitution of NFC.
The Balochistan’s member Dr Kaiser Bengali was of the view when contacted that the NFC and PFCs were major issues. The federal government, he said, has not yet reconstituted NFC which is causing delay in convening its meeting.
So far the PTI-led KP government clinches top position as in latest development the PFC has finalised resource distribution formula in order to distribute resources on the basis of 70:30 percent among the provincial and districts governments respectively.
“First time in the country’s history, the KP’s PFC has finalised resource distribution formula under which 5 percent weightage has been given to resource generation capability of the districts to distribute resource envelop,” official sources confirmed to The News here on Saturday.
When contacted to KP’s Minister for Local Government Inayatullah Khan, he confirmed to The News on Saturday that the PFC finalised resource distribution formula on the basis of population, poverty, lack of infrastructure and revenue generation. “The PFC has granted 50 percent weightage to population, 25 percent to poverty, 20 percent to lack of infrastructure and 5 percent to revenue generation for distributing resources among different districts,” he added.
He also said that 70 percent resources would be provided to provincial government while 30 percent would be provided to local governments under the PFC agreement.
In Punjab, the LG system 2013 envisages that the provincial government shall constitute Punjab Finance Commission.
Composition of Punjab Finance Commission: The Punjab Finance Commission shall consist of the following members:
(a) Minister for Finance who shall be the Chairperson; (b) Minister for Local Government who shall be the Co-Chairperson; (c) seven members of the provincial assembly of the Punjab, five members including at least one female member to be nominated by the chief minister and two members including at least one female member to be nominated by the Leader of the Opposition in the provincial assembly; mayor, metropolitan corporation; one mayor of Municipal Corporation, one chairman of Municipal Committee, one chairman of District Council and one chairman of Union Council to be nominated by the government;] (d) Secretary to the Government, Finance Department; (e) Secretary to the Government, Planning and Development Department; (f) Secretary to the Government, Local Government and Community Development Department; and (g) two professional members from the private sector to be nominated by the government on such terms and conditions as may be prescribed by the government. The composition of PFC in Sindh envisages 13 member PFC headed by minister for Finance.