Senate Finance Committee to summon all four provincial finance ministers over NFC award issue
The Senate’s Finance Committee has decided to summon all four provincial finance ministers in connection with the ongoing National Finance Commission (NFC) Award matter.
The committee is expected to hold a meeting next week to discuss the issues related to the NFC.
Sources showed that the federal government is reluctant to provide funds to the provinces for departments transferred to them after devolution.
The issue has led to tensions between the central and provincial governments, especially regarding the distribution of resources under the NFC.
The Khyber Pakhtunkhwa (KP) government has raised concerns about the population increase in the province following the merger of FATA (Federally Administered Tribal Areas), which has not been reflected in the NFC Award.
KP’s Minister, Ali Amin Gandapur, has written to the President, requesting a revision in the NFC Award allocation to account for the increased population.
According to the KP government, the division of resources under the NFC is a constitutional requirement that must be reviewed every five years.
The current NFC Award, which was determined in 2009, has been extended each year for the past 15 years.
Under the existing agreement, provinces receive 57.5% of the divisible pool of resources, while the federal government retains 42.5%.
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