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Summary
National Finance Commission meeting begins in Karachi in which announcement to give more share to provinces in financial resources is expected, Dunya News reported on Thursday. Federal Finance Minister Shaukat Tarin said on Wednesday that a final decision on the direction of the award is expected to be taken when the Commission meets on Thursday whereafter it will start work on horizontal distribution of resources and this would also be the agenda for vertical distribution. He said we have reached decision levels very closely and have given time to the provinces to take stock of the issues and return with clear mindset in Thursdays NFC meeting here wherein hopefully the final decision on the direction of the award, will be taken. The provinces would get more than 50 percent from the divisible pool and the award would be to the satisfaction of all the four provinces, he said while briefing the media after Wednesdays proceedings of the Commission which met in Karachi under his chairmanship at a local hotel. What is NFC award? The NFC award, National Finance Commission award, is the distribution of financial resources among the provinces of Pakistan by the federal government on annual basis. Certain types of taxes collected in each province are pooled, then redistributed according to the NFC formula. What taxes to include in the distribution pool and the distribution formula is a subject of debate. Pakistan has had 6 NFC awards formulas.
