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New National Finance Commission. The beginning of the end?

The Tenth National Financial Commission (NFC) has been constituted with a delay in fulfilling the requirements of the Constitution, which will consider the existing formula for allocating financial resources between the federation and the provinces and make new recommendations. Will this commission be able to come up with a new formula by consensus?

And if not, what political impact will the PTI have on the federal government? These are very important questions today regarding the new commission, as speculation began even before the commission was formed that the PTI’s federal government wanted to make a major change in the current formula for allocating financial resources.

First of all, the Tenth National Finance Commission has become controversial immediately after its formation. Sindh Chief Minister Murad Ali Shah has written a letter to Prime Minister Imran Khan calling the formation of the commission unconstitutional. He has objected to the appointment of a finance adviser as a member of the commission and a meeting of the commission chaired by him.

The Sindh Chief Minister has also objected to the appointment of Federal Secretary Finance as a member of the commission as an economist. Most importantly, the Sindh Chief Minister has also made it clear in his letter that the federal government pays its share of the expenses of the governments of Azad Kashmir and Gilgit-Baltistan. If governments now have to provide more resources, the federal government should provide its share, meaning the provinces are not ready to pay their share.

In this way, the Chief Minister of Sindh also made it clear that Sindh would never be ready for any other help on the part of the provinces. On the other hand, the formation of the commission has also been challenged in the Balochistan High Court. The petitioner objected to the appointment of Javed Jabbar as the representative of Balochistan in the commission and said that Javed Jabbar is a writer, what has he got to do with the economy? It is now clear that the commission will not be able to reach a decision by consensus.

 

Of course, decisions can be taken by majority vote, but the work that the PTI government would like to take from the commission, which according to some quarters it will be pressured to take, will be done or not. Long before the commission was formed, a debate had begun over whether the current formula for resource allocation between the federation and the provinces should be changed.

A certain circle on print, electronic and social media is constantly arguing that the provinces have been given more financial resources and the provinces are misusing these resources. The federation has very few resources, which has caused the country a lot of problems. Not only is there no financial capacity for major national development projects, but there are also no resources to address the growing security concerns.

A proposal is also circulating in the market to separate defense expenditure in the Divisible Pool. Azad Kashmir and Gilgit-Baltistan should be given separate shares like the four provinces. Thus, a new formula should be devised for the distribution of the remaining amount from the distributable pool to the federal and the provinces. From the share of provinces, funds should be distributed to Punjab, Sindh, Balochistan, Khyber Pakhtunkhwa, Azad Kashmir and Gilgit-Baltistan under the new formula.

If the PTI tries to implement these proposals, it will face a lot of political resistance as the current formula for allocating financial resources has been changed according to these proposals and the 18th Amendment to give constitutional protection to this change. Will have to edit.

A majority decision may be taken in the National Finance Commission because the federation and the three provinces have governments of the PTI and its allies, but there is no majority in parliament for constitutional amendment.

It is true that the political forces are weak at the moment. It is also true that the sword of accountability is hanging over the political forces, but the 18th Amendment and the current formula for the distribution of national financial resources are the greatest victories of the political forces in the history of Pakistan since the 1973 constitution. Despite the weaknesses and “weaknesses” of the political forces, it will not be easy to turn their victories into their defeats.

Since the PTI came to power, political polarization has increased in Pakistan. If the PTI moves towards a major change in the formula for the NFC Awards and the 18th Amendment agenda, polarization will intensify, with consequences sooner or later not good for the country.

On the contrary, assuming that the PTI does not move towards the above-mentioned agenda, it would mean that it has surrendered at the height of its confrontation with the country’s major and mainstream political forces.

Can she afford it politically? The Tenth National Financial Commission is just beginning to bring this front to a logical conclusion. In the first meeting of the commission, many things will become clear as to where the situation is heading. A certain section on print, electronic and social media is constantly arguing that more financial resources have been given to the provinces and the provinces have these resources. Are being misused. The federation has very few resources, which has caused the country a lot of problems. Not only is there no financial capacity for major national development projects, but there are also no resources to address the growing security concerns.

A proposal is also circulating in the market to separate defense expenditure in the Divisible Pool. Azad Kashmir and Gilgit-BaltistanSeparate share should be given like provinces. Thus, a new formula should be devised for the distribution of the remaining amount from the distributable pool to the federal and the provinces. From the share of provinces, funds should be distributed to Punjab, Sindh, Balochistan, Khyber Pakhtunkhwa, Azad Kashmir and Gilgit-Baltistan under the new formula.

If the PTI tries to implement these proposals, it will face a lot of political resistance as the current formula for allocating financial resources has been changed according to these proposals and the 18th Amendment to give constitutional protection to this change. Will have to edit.

 

A majority decision may be taken in the National Finance Commission because the federation and the three provinces have governments of the PTI and its allies, but there is no majority in parliament for constitutional amendment.

It is true that the political forces are weak at the moment. It is also true that the sword of accountability is hanging over the political forces, but the 18th Amendment and the current formula for the distribution of national financial resources are the greatest victories of the political forces in the history of Pakistan since the 1973 constitution. Despite the weaknesses and “weaknesses” of the political forces, it will not be easy to turn their victories into their defeats.

 

Since the PTI came to power, political polarization has increased in Pakistan. If the PTI moves towards a major change in the formula for the NFC Awards and the 18th Amendment agenda, polarization will intensify, with consequences sooner or later not good for the country.

On the contrary, assuming that the PTI does not move towards the above-mentioned agenda, it would mean that it has surrendered at the height of its confrontation with the country’s major and mainstream political forces.

Can she afford it politically? The Tenth National Financial Commission is just beginning to bring this front to a logical conclusion. At the first meeting of the commission, many things will become clear as to where the situation is heading.

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