The Provinces Betrayed Again

Society Pakistan & World Affairs
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Another unfair NFC award in the offing

http://www.dawn.com/2002/text/fea.htm#2
By Abbas Jalbani

Kawish deplores that at the National Finance Commission meeting in Karachi, Punjab was adamant that the commission should continue to maintain population the sole criterion for the seventh NFC award, which is expected to be announced by the end of this month. On the other hand, Sindh, Balochistan and the NWFP wanted revenue generation, poverty/ backwardness and geographical size of the provinces to be kept in view for distribution of tax pool revenue among them for the next year.

All over the world wherever a formula is evolved for distribution of funds among provinces of a country, it is not based only on population but factors like poverty and backwardness in different provinces are also taken into account. Ours is the only country where, since 1975 when the first NFC award was declared, population has been the only criterion for the resource distribution.

The three smaller provinces do not want any compensation for the past losses but they do want that the basis of the new NFC award be changed. Punjab’s refusal to sympathetically consider the plight of the other provinces suggests as if it does not want poverty alleviation and development process in the other provinces. While doing so, Punjab ignores the reports of various institutions which express grave concern over the rising poverty in Sindh and Balochistan. According to the report of the State Bank, the reason behind the increase in poverty in Sindh lies in destruction of the province’s agriculture sector due to water shortage. Water and finance are the two items Punjab has always wanted to keep in its hands.

Now that the debate on the coming NFC award is continuing, the Punjab government again wants its writ to prevail. However, Federal Finance Minister Shaukat Aziz says that Islamabad wants to evolve a consensus among the provinces over the award. Consensus does not mean that due to the insistence of a province, the new award be declared according to the old formula. Rather, the Centre should make Punjab agree to some new arrangements. If the sole criterion of population is maintained for the resource distribution, it will mean that the seventh NFC award will not be unanimously approved but the objections of the smaller provinces will make it controversial. Besides poverty, backwardness and size of the provinces, their demand to reduce the federation’s share should be taken into consideration.

The provinces have demanded that the federal government must authorize them to recover taxes and give each of them 40 per cent of tax revenue generated by them, says Ibrat. The issue of distribution of financial resources between the Centre and the provinces must be addressed now. Sindh provides 70 per cent of Pakistan’s revenue but, in return, it is not given even enough share to run its affairs smoothly. Similar is the case with Balochistan. This imbalance should be removed in the coming NFC award so that the deprived provinces may get a breathing space.

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No surprise, the name of the country should be changed to 'Punjabistan'

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So who is going to do anything about it? Who can? The Badshah will do whatever he wills. Zia said he could tear the 11 page document at any moment, but had not given himself the power to do that officially. Now the present ruler has done exactly that. He can amend the constitution to any extent he desires. That is exactly one of the ammendments he waved his hand and made a part of the constitution. No one in Pakistan even peeped!! So who is going to do anything about it? Take it or lump it!

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I dont know...obviously Mush can only do so much. I think he's shown some great diplomacy when it comes to alleviating grievances of the 3 "other" provinces. I think the future lies in these three provinces, and hopefully Punjab will remain good and fertile and not fall into Sindh's fate of waterless existance.

If Punjab is really acting like a pig, like this article implies, then its going to get punished for it sometime in the future. I think the new developements under way, like Thar Coal and Gwadar project, etc are going to rid us of this stupid provincial turmoil.

I agree though...at the current moment, the name should be Punjabistan, not Pakistan. Sorry Punjabi guppies - you guys are all great, but the Punjabi govt is not, i think.