Provinces given final option of 47 percent share; informal NFC meeting on April 16

The Federal Finance Ministry has given the final option of providing around 47 percent of the resources to provinces keeping remaining 53 percent for the centre.
The last session of the chief ministers' meeting on NFC Award, which according to the sources was held without Federal Finance Minister Shaukat Aziz, who had given his last bid of 47 percent and left provinces to finalise/distribute their share among themselves.
Inter-provincial meeting of chief ministers was underway till filing of this report.
An informal NFC meeting is scheduled for Friday before noon to wrap up the initial recommendations. If no formula is agreed upon then it could take few other such informal sessions to resolve this issue, added the sources.
Provinces were working on 85-90 percent resource distribution of their share on the basis of population, while remaining could be shared taking into account other issues like backwardness, inverse population density and revenue collection.
Provinces were of the view that last military government had offered 47.8 percent, while the political government has not shown flexibility and is accepting lesser (47 percent).
Four chief ministers including Sindh's Ali Muhammad Mahr, NWFP's Akram Durrani, Punjab's Perveiz Elahi and Balochistan's Jam Muhammad Yusaf were together with their finance ministers and provincial secretaries working on the issue.
Earlier in the day they again talked to President Pervez Musharraf and gave him the details of their working.
Punjab wanted distribution on the basis of population. The remaining three provinces are seeking funds on compound formula with weightage to backward areas and revenue collection.
Moreover, the NWFP had asked for a clear-cut assurance for the resolution of net profit on hydel power from Wapda.
The issue has become political as the provincial assemblies have passed resolutions on their strict demands.
It was earlier decided the issue would be settled by March 31, 2004 so that it could be incorporated in the 2004-05 budget. The date passed and the five parties remained to have a resolution.