President Pervez Musharraf has called a special meeting of all chief ministers and federal finance minister on Tuesday to resolve the National Finance Commission issue facing deadlock, sources told Business Recorder.
The chief ministers along with Finance Minister, Shaukat Aziz would present their views before the President during the meeting.
The National Finance Commission has already met number of times according to the set schedule but could not come up with the resolution.
THERE ARE TWO CONTENTIOUS ISSUES: First, the distribution of resources from federal divisible pool, which the four provinces are demanding 50 percent and the centre is ready to give around 46 percent.
Secondly, the provinces are not agreed on a formula where Punjab wants distribution on the basis of population, whereas the remaining provinces are seeking funds on compound formula having weight-age of backward area and revenue collection.
Earlier, the provinces were asked to procure their forecasts of expenditures and revenues for next five years, which, according to federal finance ministry entailed an element of overstatement of facts.
Moreover, NWFP had asked for a clear-cut assurance for the resolution of hydle profit from Wapda.
The issue has become political one as the provincial assemblies have passed resolutions on their strict demands.
It was earlier decided that the issue would be resolved by March 31, 2004 so that it could be incorporated in the 2004-05 budget. The date passed and it remained undecided.
Prime Minister Jamali has also talked to the stakeholders and heard their views. However, constitutionally provincial finance ministers and federal finance minister have to reach an agreement.