The Khyber Pakhtunkhwa government has warned that it will not agree to further extension of the 7th National Finance Commission (NFC) on changes in the province’s population and poverty figures after the merger of the Federally Administered Tribal Areas (tribal districts) into the province. Will be.
Adviser to Chief Minister Khyber Pakhtunkhwa on Finance Muzamil Aslam has told Dawn that we have made several contacts including phone calls and letters to the Federal Ministry of Finance on the issue of NFC but have not received any response.
He said that although a surplus has been kept in the budget of the provincial government, it will not give up its share in the NFC award.
The Finance Department informed the Ministry of Finance in a statement that the province is facing financial problems after the merger of the federal and provincially administered tribal areas in 2018.
The letter complained that since the merger of FATA and Khyber Pakhtunkhwa, more than 6.1 lakh residents of the merged districts have not been accommodated in the inter-governmental fund transfer mechanism under the NFC award.
The letter from the provincial department added that Chief Minister Ali Amin Khan Gandapur highlighted the problems faced by the residents of the tribal districts after the 25th constitutional amendment in the Tribal Jirga on September 5.
In addition to discussions on other financial and administrative issues in the Jirga, emphasis was placed on ensuring timely provision of funds to the province’s share of national resources after the merger of FATA through negotiations with the federal government.
The letter said the legal framework made the NFC an important forum, a strong feature of the federal structure, but noted that the requisite process of continuous consultation had not been implemented.
According to the letter sent by the provincial finance ministry, it is our knowledge that the 25th constitutional amendment is based on the mainstream and is aimed at removing the historical developmental stagnation faced by these areas in the first 70 years of the country’s history, but The task given to this province is not only difficult but also beyond our current financial capacity.
The letter added that the federal government had promised to pay for this ‘hard work’ but this ‘commitment’ appears to have lapsed over the years.
The petition contended that in the 7th NFC Award, no specific amount was allocated for FATA even though it was a Federal Territory, whereas the award allocated more money to Balochistan and other provinces in the formula. Different needs have been recognized.
In the letter, the finance department complained that while all the four provinces have started receiving more funds under the 7th NFC award, FATA has received less investment under the NFC award, which has led to a lack of growth and employment in the region. Opportunities have decreased.
The Provincial Finance Department requested the Federal Ministry of Finance to call a meeting of the NFC and said that it is a matter of great concern that the 7th NFC Award is not in accordance with the Constitution.
