GWADAR: The Chief Ministers of four provinces on Wednesday signed the historic 7th National Finance Commission Award, marking a great step forward to the strengthening of the federation.The ceremony at Gwadar, in Balochistan province, was witnessed by Prime Minister Yousuf Raza Gilani and members of his cabinet.
The venue was specially chosen to reflect the desire of all provinces to end years of deprivation of the country’s largest province.
The Award was inked by the finance ministers of the four provinces in the presence of Punjab Chief Minster Shahbaz Sharif, Sindh Chief Minister Qaim Ali Shah, NWFP Chief Minister Ameer Haider Hoti and Balochistan Chief Minister Aslam Raisani and Finance Minister Shaukat Tarin.
The new Award would come into effect from the next financial year and marks the agreement by all the federating units over the distribution of financial resources among the provinces by the federal government on an annual basis.
Under the award population will be given 82 per cent weightage, poverty 10.3 per cent, revenue collection five per cent (2.5 per cent revenue generation, 2.5 per cent revenue collection) and area 2.7 per cent.
Under the new NFC Award, the federation met the demand of the provincial governments for a greater share in national resources.
The provincial share of the divisible pool would increase from 47.5 per cent to 56 per cent in the first year of NFC and 57.5 per cent in the remaining years of the Award.
Under the new formula, Punjab would get 51.74 per cent from the divisible pool, Sindh 24.55 per cent, NWFP 14.62 per cent and Balochistan 9.09 per cent.
In the new award, Punjab has given up 1.27 per cent, Sindh 0.39 per cent and NWFP 0.26 per cent, while Balochistan has gained. — APP
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