7th NFC accord signed at Gwadar

Pakistan

7th NFC accord signed at Gwadar

Close

30 December,2009 09:31 am

Prime Minister Syed Yousuf Raza Gilani, Finance Minister Shaukat Tarin and all the four chief ministers have signed the 7th NFC award at Gwadar, Dunya News reported today.The event is a landmark in the history of Pakistan as after 19 years a unanimous NFC award got sealed. Gilani chaired the signing ceremony, which is being held on deck of a ship at Gwadar.The new finance accord would come into effect in the fiscal year 2010-11 in which, for the very first time in history, distribution of resources has been based on population, while area revenue would be based on poverty and backwardness. In the accord, the distribution of funds for the federation has been cut by 8.5 percent shrinking it to 44%.However, from the divisible pool, the provinces would get 56 percent in the first year and 57.5 in the second fiscal year. Under the new formula, Punjab would get 51.74 percent from the divisible pool, Sindh 24.55 percent, NWFP 14.62 percent and Balochistan 9.09 percent.The provinces would themselves take the services sales tax and the federation would take only one percent out of earlier imposed five percent charges. Besides, the federation would bear the expenditures of war on terror itself. Balochistan would get Rs83billion from the divisible pool, while the federation would give one percent more from the same to NWFP. Under the new NFC Award, the federation met the demand of the provincial government for a greater share in the national resources. Bar on becoming PM for third time would be lifted: GilaniGilani termed inking of NFC award a success for all the four provinces, adding that only democracy could win such goals and not dictatorship. Addressing the signing ceremony of NFC award today, the PM greeted the whole nation, saying that the accord would strengthen the provinces. The PM also announced to abolish bar on becoming prime minister for third time in the country.Meanwhile, addressing the gathering CM Balochistan Aslam Raisani said that a unanimous NFC accord would help strengthen Pakistan, while CM NWFP Hoti said that countrys strength lies in strong provinces. Speaking on the occasion, CM Sindh Qaim Ali Shah said that it is the responsibility of everyone to help the Baloch brothers adding that NFC award is the fruit of democracy.CM Punjab Shahbaz Sharif, while addressing the gathering said that the award has addressed the sense of deprivation among the small provinces.Finance Minister Shaukat Tarin said that the government took all the provinces on board regarding the NFC award to do away with the trust deficit among the provinces.