Balochistan will receive Rs 1.817 billion additional revenue on account of gas development surcharge (GDS) in the seventh National Finance Commission (NFC) award based on the weighted average wellhead gas price in 2008-09 financial year, Business Recorder has reliably learnt. According to informed sources, NWFP will receive Rs 164 million and Punjab Rs 545 million as additional revenue on account of GDS under the new formula.
"However, Sindh province will face a revenue loss of Rs 2.526 billion that would be compensated by enhancing Federal excise duty," the sources said. The total share of Balochistan province on account of royalty and GDS receipt will increase from Rs 8.998 billion in 2008-09 to Rs 10.815 billion on 233,179 bbtu gas output. The NWFP share will surge to Rs 1.509 billion as against Rs 1.345 billion on 32,533-bbtu-gas output. These estimates are based on the available for 2008-09.
Punjab and Sindh provinces received Rs 2.328 billion and Rs 43.057 billion revenue respectively in 2008-09; that would be enhanced for Punjab to Rs 2.873 billion and decline for Sindh to Rs 40.531 billion under the revised GDS formula. Sindh will be compensated for the revenue shortfall of Rs 2.526 billion under the new GDS formula by increasing Federal excise duty on gas.
Pakistan's total revenue collection on account of royalty and GDS will stand at Rs 55.728 billion with Rs 34.495 billion royalty and Rs 21.233 billion GDS. As per the former formula, the loss of royalty to Balochistan is about rupees two billion and the revised formula results in additional revenue of Rs 1.8 billion to compensate for the royalty loss.
In the new formula, the share of Balochistan will be 28.7 percent; NWFP three percent; Punjab 7.8 percent and Sindh 60.4 percent. In the past, Balochistan's share was 20.2 percent, NWFP's 2.2 percent, Punjab's 5.3 percent and Sindh's 72.3 percent.
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