Updated on
Summary
First session of National Finance Commission (NFC) has been ended under the chairmanship of Finance Minister Shaukat Tarin in which agenda of the NFC award was finalised. Finance ministers of all the four provinces besides non-government representatives attended the session and discussed the formula for distribution among the provinces. Balochistan, Sindh and NWFP demanded to change the current formula of distribution the resources among provinces. The Punjab supports a continuation of the current distribution according to population. Sindh favours switching to distribution on the basis of revenue generation, while Balochistan favours distribution on the basis of area. The NWFP favours distribution on the basis of need, and also now favours the effects of the War on Terror being factored in. National Finance Commission (NFC) is established by law for the smooth and judicious re-distribution of resources collected by centre according to the need and goals for development of federation and federating units. NFC is constituted under Article 160(1) of the 1973 constitution (Annex I) and proposed to be held at the intervals of five years. Its members are Federal Finance Minister (Chairman), Provincial Finance Ministers and other concerning experts which the President may appoint after consultation with provincial Governors [Constitution of Pakistan (1973)].National Finance Commission (NFC) was first constituted in 1974. It is not a permanent body and doesn't have a permanent representation.
