The Sindh Chief Minister, Syed Murad Ali Shah, on Saturday said the Constitution did not allow a reduction in the share of provinces in the National Finance Commission award amid reports that the International Monetary Fund was seeking a reassessment of the award.
Under the 7th NFC Award, the share of provinces in vertical distribution was increased from 49 per cent to 56pc during 2010-11 and 57.5pc during the remaining years of the award.
While talking to media in Karachi, Shah said the government could not reduce the allocation to the provinces in the NFC award due to IMF pressure. “It is written in the Constitution about the NFC award that the share of the provinces [in resources] cannot be reduced [but] it can be increased,” he added.
Shah said the government must have likely intimated the IMF about this, adding that he was not even sure if the reduction was a condition in the IMF talks or not since he was not part of them.
The chief minister said provinces were given additional responsibilities after the 18th Amendment and, thus, the NFC award should be changed accordingly to reflect them instead of continuing the 7th NFC Award.
He reiterated that it was the PPP and Sindh government’s demand from the federal government to bring in a new NFC award since the old no longer applied after the 18th Amendment.
