Re: Pakistan or Punjabistan?
Sindh got only Rs 36bn
By GN Mughul
HYDERABAD: Out of a total revenue of Rs 400 billion estimated to have been collected by the CBR during the financial year 2001-2002 from all over the country, the estimated collections from the Punjab were Rs 108 billion, ie 27 per cent.
The estimated share that Punjab received from the national divisible pool is Rs 98 billion, ie 24.5 per cent. As against this, the estimated share of Sindh in total collections made from all over the country during the financial year, was calculated to be Rs 256 billion, ie 64 per cent, while in return the estimated amount it received as its share from the NDP is only Rs 36 billion, ie 9 per cent.
Similarly, during the financial year 1999-2000, the Punjab's total actual collection in the divisible pool was Rs 77,912 million while its share from the pool was Rs 70,069.1 million. As against this, during the same financial year, Sindh's actual total collection in the divisible pool was Rs 189,461 million while the share it received from the pool in return was only Rs 30,056.1 million.
Those collections comprised income tax, sales tax, federal taxes and customs duties, said sources in the Sindh government while quoting the statistics compiled by the relevant agencies of the government of Pakistan.
Based on these facts and figures, the financial managers are of the strong contention that the "disbalance" is only because of the formula for the distribution of national divisible pool among the provinces, based exclusively on the population of the provinces. They regretted that the formula had been in vogue since the 1970s despite repeated representations and protests lodged by successive governments of Sindh. According to the financial managers, with the continuous implementation of the formula the resources continue to be siphoned off from Sindh to the Centre and Punjab, rendering Sindh the poorest province of the country, despite having very rich natural resources.
These circles said some increase in the receipts of Sindh from the Centre was due to the amount it was receiving in lieu of the oil and gas drilled out in Sindh. They said that Sindh had 62 per cent share in the total oil drilled out in the country. Besides, they said, 48 per cent of total gas quantum of the country was drilled out in Sindh.
These quarters claimed that during the next five to six years the quantum of oil and gas to be found in Sindh would increase to about 80 per cent of total oil and gas estimated to be found in Pakistan.
However, the financial managers of Sindh have expressed complete dissatisfaction over the formula on which presently royalty etc is being paid to the province for the oil and gas and termed it peanuts.
The financial managers of Sindh are quietly carrying out homework to study the formulae of different oil producing countries under which the areas where oil or gas is found are paid royalty or other benefits.
According to these circles, three members of a group formed by the National
Finance Commission to devise a formula for the distribution of national divisible pool among the provinces, recommended taking into consideration some other factors too in addition to the population, while devising the formula.
The three members represented Sindh, Punjab and Balochistan. But since the Punjab did not endorse the recommendation, it was rejected.
The News Nov. 1, 2002
^There goes the theory of making money from 'karachi port tax' only.