ISLAMABAD: Khyber Pakhtunkhwa CM advisor finance Muzzammil Aslam said on Sunday the provincial government would demand changes in the formula of horizontal resources distribution within the federating units at the NFC forum.
He said 82 percent of resources were distributed among the provinces on the basis of population and 10.6pc on of backwardness. The KPK government would demand a decrease in population, prosperity and forestation as criteria for distribution of resources under National Finance Commission (NFC) Award, he said.
“Under the vertical formula, the provinces got 57.5 percent shares and the remaining went to federal government”, he said. The KPK would demand changes in the criteria of horizontal distribution of resources, with the provinces where major chunk of 82 percent was distributed on the basis of population, he said.
“We will demand population and backwardness should be disincentives for resource distribution among the provinces”, the KP minister said.
Muzammil Aslam was addressing the first-ever two-day Prosper Pakistan conference organised by FPCCI Regional Office Peshawar in collaboration with KP’s Board of Investment and Trade as well as other partners at Nathia Gali.
The Prosper Pakistan team, led by Hiba Fawad and Aun Ali Syed, organised the event. Representatives of chambers across the country attended the conference.
The federal government has constituted the NFC. Its maiden session is scheduled to meet next week to kick-start deliberations for striking a consensus on NFC Award.
He said it was not yet known whether the NFC Award would be a continuation of 7th NFC Award, or a new debate would start on resource distribution under 11th NFC Award.
He said there were 12 ongoing hydropower projects in the province to generate 1000MW. The electricity could be provided at 8 cents per unit. The government has increased wheeling charges up to Rs27 per unit to block cheaper electricity from his province, he said.
He said IRSA distributed 110MAF of water among provinces. It was agreed four canals would be constructed, but the Left Bank Canal could not be constructed, he told.
The KP CM advisor quoted Federal Minister for Planning Ahsan Iqbal as saying federal government was heading towards economic collapse in a five-year period because the national kitty was empty and federal development budget was less than Punjab and Sindh.
He lamented National Highway Authority (NHA) was used to undertake road development projects in Punjab and Sindh, but ignored KPK and Balochistan. “The imbalance in development approach has aggravated the situation in the smaller provinces”, he said.
He criticised the federal government for claiming deforestation in the province, saying KP government increased its budget, as 45pc forests of Pakistan exist in the province. He said provincial government has provided a compensation package to the families of deceased died in recent flash floods in the province.
On this occasion, Tajikistan’s Ambassador in Pakistan said CASA-1000 project for provision of cheap electricity would be completed by 2026. “Bilateral trade continues, and 250 to 400 trucks are transporting goods from each side” he informed.
He asked for enhanced cooperation in the banking sector to promote bilateral trade. He disclosed there was one unit in Tajikistan exporting $120 million worth of cotton. In Pakistan, it was shown only $50 million, he said.
Business leader Anjum Nisar highlighted the “blunders” committed by all regimes. State Owned Enterprises (SOEs) were causing losses of Rs850 billion or $3billion on annual basis, he said.
The country, he said, struck Free Trade Agreements (FTAs) without undertaking any spadework, while the IPPs destroyed economy to unimaginable levels.
He said flight of capital to the tune of $12 billion occurred in the Gulf and UAE, while investment touched its lowest ebb within the country. The corporate sector, he said, was paying 61pc Income Tax instead of the perception the sector rate stood at 29pc.