KP government has decided to take forceful stance regarding its demand for increase in net hydel profit (NHP) and payment of NHP arrears, along with other matters relating to oil and gas in the upcoming meeting of the Council of Common Interests (CCI), as this forum is likely to meet within few days. KP would demand for outstanding amount on head of NHP overdue against the Centre that stood at Rs 381 billion, besides KP would also seek payment of Rs 119 billion compensation for using its share of water by other provinces.
In this regard, a proposal of five percent annual increase in water compensation amount was also included in the recommendations, a reliable source in provincial Finance department told this scribe. Source further said KP would seek raise its share from one percent to five percent in foreign dividend funds (FDF), for the war against terrorism and disbursement of annual NHP as per present current electricity tariff, source said.
It further said KP would seek first time separate share for Federally Administrated Tribal Areas (Fata), while it would also demand to reduce share of 42.5 percent to 40 percent of Centre in federal divisible pool, by increasing provinces share from 57.5 percent to 60 percent.
If the CCI didn't accept demands, then a special meeting would be arranged with Prime Minister Nawaz Sharif to express the concerns of the Khyber Pakhtunkhwa, source mentioned. After the hiatus of 10 months, the meeting of Council of Common Interest (CCI) is likely to be convened on February 29, to discuss reservations of Sindh and KP about issues of water, electricity, oil and gas and recommendations from four provinces. The Finance ministers from four provinces, along with members, would attend the meeting to present their recommendations on behalf of their respective provinces. However, it was learnt that KP will not sign if the demands were not meet by CCI forum.
The provincial governments of Sindh, KP and Balochistan have differences with the central government over distribution of water and electricity, national census, privatisation of public sector entities (PSEs) and matters relating to law and order situation and others. In the forum, official sources said that KP will discuss matters pertaining to outstanding amount of Rs 381 billion arrears on head of NHP, and determination of tariff, increase in net hydel profit and payment NHP arrears during current fiscal year and upcoming financial periods.
Meanwhile, the National Finance Commission meeting was delayed due to lack of constitution of ninth NFC. At the first, the award was delayed when Sindh took months to appoint its statutory member to negotiating team when it did so, the budget was too close to embark on the exercise. This resulted in an interim award under which oil allocations were to continue for another year.
According to reports the statutory member from Punjab was appointed by provincial Finance minister and a placement was announced by President Mamnoon Hussain on recommendation of Punjab had appointed Nawid Ahsan as non-statutory member of the commission. With Nawid Ahsan appointment, the constitution of 9th NFC is so far completed. Other non-statutory members from rest of provinces included Muhammad Ibrahim Khan (KP), Saleem Mandviwala (Sindh) and Kaiser Bengali (Bolachistan).
After many months, when the constitution of commission had completed with appointment of non-statutory member from Punjab, while halfway mark so far past in the fiscal year. Those concerns included the NHP owed of KP, as well as provincial revenue generation. The NFC Award is an important constitutional forum to resolve differences and address inter-provincial politics and fiscal framework challenges. For that purpose, KP Ministry of Finance had prepared strong case to present in the CCI forum, source said.
According to which the Centre would demand to immediate payout over Rs 18 billion in light the decision of National Power Regulatory Authority (NEPRA) along with ensure separate ratio for the every financial year. The issue of Rs 381 billion outstanding against Wapda, would be raised in the meeting. KP government had discussed during earlier meeting with Federal Minister Finance Senator Ishaq Dar and high official of Wapda.
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