KP asks Centre to raise its foreign dividend fund to 5pc

Seeks payment of Rs144 bn under head of net hydel profit; inclusion of gas infrastructure development cess, petroleum development levy in
divisible pool demanded; working group of NFC meets in Islamabad

PESHAWAR: The Khyber Pakhtunkhwa government has demanded the Centre to raise its share from 1 percent to 5 percent in the foreign dividend fund (FDF) for the war against terrorism and payment of Rs144 billion in the head of net hydel profit.

The demand was made at a meeting of a working group of the National Finance Commission (NFC) in Islamabad on Monday with Prof Muhammad Ibrahim in the chair. The working group was tasked to prepare a report on Allocation Efficiency and Expenditure analysis at the federal and provincial levels.

KP also demanded inclusion of gas infrastructure development cess and petroleum development levy in the divisible pool through the NFC notification.

According to an official handout, Khyber Pakhtunkhwa Minister for Finance Muzaffar Said, Aisha Ghaus Pasha, Federal Joint Secretary for Finance Punjab, Syed Anwarul Hassan Bukhari and finance secretaries of all the provinces also attended the meeting.

The participants of the meeting discussed in detail the report presented by KP. The Punjab finance minister said that with the help of this report the provinces would be able to present own cases for increase in share of revenue. He stressed the need for increasing in revenue due to the burden on the provinces as a result of the 18th Amendment and SDG.

The meeting also described the China-Pakistan Economic Corridor (CPEC) and National Action Plan (NAP) as two different issues.The federal secretary on this occasion touched the issue of KP’s share in the allocation for anti-terrorism fund and added that it should be increased from 1 to 5 percent. He told the meeting that KP had demanded Rs66 billion under the National Action Plan. He stressed the need for reviewing of the demands of the provinces in respect of the 18th Amendment and SDG and described it an important report.

The secretary expressed satisfaction at the recommendations forwarded by the KP province.KP Finance Secretary Ali Raza Butta on the occasion presented a summary of the meeting.Prof Muhammad Ibrahim, while expressing displeasure over the delay in convening the meeting, said that a member from the Punjab should be appointed with immediate effect.